monetary and banking audit challenges; Solutions and suggestions, Accrual or cash accounting approach?

The issue of auditing is one of the important issues in the financial and banking system of Iran. Also, the lack of proper auditing has led to an increase in inflation and problems related to income distribution. In this field, One of the important issues is the basis of accrual and cash accounting. Therefore, this article is looking for the optimal accounting model in order to achieve transparency, efficient cost and income management, and liquidity and inflation control. Therefore, the answer to this question has been addressed by using different scientific sources, and with two methods of achieving goals and adapting to Islamic principles. Due to the power of banks to create money, the important point is that accounting in the banking sector has a different analysis from accounting in other sectors, especially in the recent conditions of the Iranian economy, and therefore significant changes have occurred in this field.After examining the types of accounting and the process of trend in Iran's banking sector, this research has addressed some related concepts, and after the pathology of the accounting system, it has analyzed the types of accounting principles based on two goal-oriented approaches and the approach of adapting to Islamic principles.Mainly the results show that the imbalance of banks, increase in liquidity, monetary base and inflation; Irregular increase in expenses and decrease in bank income, increase in nonperforming loans, are the main harms of accrual accounting in Iran. Based on this, firstly, semi-accrual accounting should always be considered to calculate profit in banks; Secondly, for transparency, full accrual accounting should be used along with semi-accrual accounting. Thirdly, at the same time as this process, and in order to gradually control the incomes and expenses in real terms the banking supervisors should also exercise appropriate supervision on the banking system with the help of the balance sheet control.