Identifying and modeling effective factors on the effectiveness of internal audit and its impact on the quality of financial reporting, considering the role of organizational culture

Abstract

The main objective of this research 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 organizational culture. This research is exploratory in nature and applied in purpose. The statistical population of this research consists of 179 managers of listed and unlisted companies in Iran. Interviews and questionnaires were used to collect the information required in the present research, and inferential statistics and structural equation tests were used to examine the hypotheses. The results of the research showed that organizational structure, risk management, audit committee, board of directors and managers, accounting information systems, working relationships (interactions) between internal and external auditors, independence, moral courage, technological capabilities, professional commitment, auditor competence, and internal control have the highest coefficient of influence on the effectiveness of internal audit. The results also showed that the effectiveness of internal audit and organizational culture have a positive effect on the quality of financial reporting. Other results showed that organizational culture does not have a moderating effect on the relationship between internal audit effectiveness and financial reporting quality.