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
Keywords:
Internal Audit Effectiveness, Financial Reporting Quality, Senior Management SupportAbstract
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 179 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 (0.803), risk management (0.780), audit committee (0.774), board of directors and managers (0.764), accounting information systems (0.688), working relationships (interactions) between internal and external auditors (0.611), independence (0.536), moral courage (0.527), technological capabilities (0.470), professional commitment (0.440), auditor competence (0.366), and internal control (0.359) 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.
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Copyright (c) 2025 Mohammad Bagher Hatami, Rahman Saedi, Mohsen Rahimi Dasjerdi, Hamzeh Mohammadi Khoshouei (Author)
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