Identification and Modeling of Factors Affecting the Effectiveness of Internal Audit and Its Impact on the Quality of Financial Reporting Considering the Role of Senior Management Support

The main objective of this study is to identify and model the factors affecting the effectiveness of internal audit and its impact on the quality of financial reporting, taking into account the role of senior management support. In terms of nature, this research is exploratory, and in terms of purpose, it falls under applied research. The statistical population of this study consists of ۱۷۹ managers of listed and over-the-counter (OTC) companies in Iran. To collect the required data, interviews and questionnaires were employed. To test the hypotheses, inferential statistics and structural equation modeling (SEM) tests were applied. The results of the study showed that organizational structure (۰.۸۰۳), risk management (۰.۷۸۰), audit committee (۰.۷۷۴), board of directors and managers (۰.۷۶۴), accounting information systems (۰.۶۸۸), working relationships (interactions) between internal and external auditors (۰.۶۱۱), independence (۰.۵۳۶), moral courage (۰.۵۲۷), technological capabilities (۰.۴۷۰), professional commitment (۰.۴۴۰), auditor competence (۰.۳۶۶), and internal control (۰.۳۵۹) had the highest coefficients of impact on the effectiveness of internal audit, respectively. The findings further revealed that the effectiveness of internal audit and senior management support have a positive impact on the quality of financial reporting. Additional results indicated that senior management support has a moderating effect on the relationship between internal audit effectiveness and the quality of financial reporting. The main objective of this study is to identify and model the factors affecting the effectiveness of internal audit and its impact on the quality of financial reporting, taking into account the role of senior management support. In terms of nature, this research is exploratory, and in terms of purpose, it falls under applied research. The statistical population of this study consists of ۱۷۹ managers of listed and over-the-counter (OTC) companies in Iran. To collect the required data, interviews and questionnaires were employed. To test the hypotheses, inferential statistics and structural equation modeling (SEM) tests were applied. The results of the study showed that organizational structure (۰.۸۰۳), risk management (۰.۷۸۰), audit committee (۰.۷۷۴), board of directors and managers (۰.۷۶۴), accounting information systems (۰.۶۸۸), working relationships (interactions) between internal and external auditors (۰.۶۱۱), independence (۰.۵۳۶), moral courage (۰.۵۲۷), technological capabilities (۰.۴۷۰), professional commitment (۰.۴۴۰), auditor competence (۰.۳۶۶), and internal control (۰.۳۵۹) had the highest coefficients of impact on the effectiveness of internal audit, respectively. The findings further revealed that the effectiveness of internal audit and senior management support have a positive impact on the quality of financial reporting. Additional results indicated that senior management support has a moderating effect on the relationship between internal audit effectiveness and the quality of financial reporting.

کلیدواژه ها:

Internal Audit Effectiveness ، Financial Reporting Quality ، Senior Management Support