Control over financial reporting and reporting weaknesses with internal significance based on the statement of Tehran Stock Exchange Organization, and designing an effective internal control system to realize the micro and macro objectives of the company is very important. The individual and social characteristics of the board of directors are very significant factors in accomplishing their goals and tasks at the level of company and society. In this research study, the impact of board characteristics on the relationship between internal control weaknesses and fraud in financial statements has been examined. To this aim, the data of 113 companies which were members of the Tehran Stock Exchange from the years 2012 to 2017 have been used based on the limitations. In this investigation, in order to examine the subject of the research, two main hypotheses have been used, which included 12 sub-hypotheses. Research hypotheses have been investigated using the Eviews software version 10 at 95% confidence level and the results have been presented. Research variables include (dependent-independent-control and moderator). Based on the results obtained from testing the hypotheses, it can be concluded that there is a direct and significant relationship between the weakness of internal controls and fraud in financial statements, and there is an inverse and significant relationship between the characteristics of independence and financial expertise of the board of directors and fraud in financial statements.
