The Impact of Managerial Support and Organizational Independence of the Internal Audit Unit on the Effectiveness of Internal Auditing
Keywords:
Managerial Support, Organizational Independence, Internal AuditingAbstract
This study aimed to examine the impact of managerial support and organizational independence of the internal audit unit on the effectiveness of internal auditing in companies listed on the Tehran Stock Exchange. This applied research employed a descriptive-correlational survey design and was conducted using a cross-sectional approach. The statistical population consisted of Tehran Stock Exchange-listed companies with active internal audit units. A systematic elimination sampling method was used, resulting in a final sample of 60 respondents from internal audit departments. Data were collected through a standardized questionnaire adapted from previous studies. Internal audit effectiveness was considered the dependent variable, while managerial support and organizational independence served as the independent variables. Content validity was confirmed by accounting experts, and reliability was assessed using Cronbach’s alpha. Data were analyzed using SPSS and LISREL software through structural equation modeling and path analysis. The results indicated that managerial support had a significant positive effect on internal audit effectiveness (β = 0.94, p < 0.05). Organizational independence of the internal audit unit also demonstrated a significant positive impact on internal audit effectiveness (β = 0.68, p < 0.05). Model fit indices showed acceptable levels of fit for both hypotheses, confirming the adequacy of the proposed theoretical model. The findings further revealed that managerial support was the strongest predictor of internal audit effectiveness among the examined variables. The study concluded that managerial support and organizational independence are critical determinants of internal audit effectiveness. Managerial support enhances audit performance by providing resources, strengthening organizational status, and facilitating the implementation of audit recommendations. Organizational independence improves audit quality by ensuring objective evaluations and unrestricted reporting. Strengthening these factors can significantly improve internal audit effectiveness, internal control quality, risk management processes, and overall corporate governance within organizations.
Downloads
References
Agussalim. (2019). Auditor Competence, Independence and Their Influence on Audit Quality: Empirical Study at Public Accountant Office of Padang.
Ahmad, A. Y. A. B., Atta, A. A. M. B., Alawawdeh, H. A., Aljundi, N. A., Morshed, A., Dahbour, S. A., & Alqaraleh, M. H. (2023). The Effect of System Quality and User Quality of Information Technology on Internal Audit Effectiveness in Jordan, and the Moderating Effect of Management Support. Applied Mathematics, 17(5), 859-866.
Al-Taee, S. H. H., & Flayyih, H. H. (2023). Impact of the Electronic Internal Auditing Based on IT Governance to Reduce Auditing Risk. Corporate Governance and Organizational Behavior Review, 7(1), 94-100.
Alzeban, A. (2022). CEO Characteristics, Management Support for Internal Audit and Corporate Performance: An Analysis of Listed Malaysian Companies. Managerial Auditing Journal, 37(1), 102-128.
Barkhordar, K., Nazemi, A., & Namazi, N. (2021). Examining the Factors Affecting Internal Audit Effectiveness and Evaluating the Role of Internal Audit in Risk Management and Internal Controls of Bank Keshavarzi. Professional Auditing Research, 2(1), 5-33.
Barr-Pulliam, D., Brown-Liburd, H. L., & Sanderson, K. A. (2022). The Effects of the Internal Control Opinion and Use of Audit Data Analytics on Perceptions of Audit Quality, Assurance, and Auditor Negligence. Auditing: A Journal of Practice & Theory, 41(1), 25-48.
Borges, G., & Klein, L. L. (2023). Quality of Internal Auditing in Federal Educational Institutions: An Analysis of the Perception of Internal Audit Members and Senior Management. Managerial Auditing Journal, 38(7), 1141-1161.
Ganji, H., Hosseini, S. R., Rouzban, M., Mohammadzadeh, S., & Nami Fard Tehrani, N. (2023). The Effect of Antecedents and Consequences of Internal Audit Effectiveness on Internal Audit Quality. Judgment and Decision Making in Accounting, 5(1), 107-138.
Harasheh, M., & Provasi, R. (2023). A Need for Assurance: Do Internal Control Systems Integrate Environmental, Social, and Governance Factors? Corporate Social Responsibility and Environmental Management, 30(1), 384-401.
Irwansyah, I., & Zega, W. (2023). The Influence of Good Corporate Governance, the Role of Internal Audit, the Effectiveness of Internal Controls and the Appropriate of Compensation on Fraud Trends. International Business and Accounting Research Journal, 7(1), 37-51.
Jamei, R., & Jafari, S. (2020). The Effect of Audit Committee Characteristics on the Implementation of Internal Audit Recommendations in Companies Listed on the Tehran Stock Exchange. Accounting and Auditing Studies Quarterly, 33(11), 57-74.
Kravariti, F., Tasoulis, K., Scullion, H., & Alali, M. K. (2023). Talent Management and Performance in the Public Sector: The Role of Organisational and Line Managerial Support for Development. The International Journal of Human Resource Management, 34(9), 1782-1807.
Madawaki, A., Ahmi, A., & Ahmad, H. N. (2022). Internal Audit Functions, Financial Reporting Quality and Moderating Effect of Senior Management Support. Meditari Accountancy Research, 30(2), 342-372.
Mehryabzadeh, A. (2024). Examining the Relationship between the Audit Committee and the Use of Internal Audit in a Managerial Educational Role and Its Effect on Internal Audit Independence and Objectivity. New Approaches in Management and Accounting, 11(92), 1170-1191.
Mohammad, A. A. S., Shelash, S. I., Saber, I. T., Vasudevan, A., Darwazeh, R. N., Almajali, R., & Fei, Z. (2025). Internal Audit Governance Factors and Their Effect on the Risk-Based Auditing Adoption of Commercial Banks in Jordan. Data and Metadata, 4, 464-464.
Rahardja, Q., Aini, Q., & Hardini, M. (2018). Penerapan Software Akuntansi Online Sebagai Penunjang Pencatatan Laporan Keuangan. SISFOTENIKA, 8(2), 176-187.
Samagaio, A., & Felício, T. (2023). The Determinants of Internal Audit Quality. European Journal of Management and Business Economics, 32(4), 417-435.
Setyowati, W., Kurniawan, P., Mardiansyah, A., Harahap, E., & Lutfiani, N. (2021). The Role of Duty Complexity as a Moderation of the Influence Auditor's Professional Knowledge and Ethics on Audit Quality. Aptisi Transactions on Management (Atm), 5, 20-29. https://doi.org/10.33050/atm.v5i1.1483
Xiao, T., Geng, C., & Yuan, C. (2020). How Audit Effort Affects Audit Quality: An Audit Process and Audit Output Perspective. China Journal of Accounting Research, 13. https://doi.org/10.1016/j.cjar.2020.02.002
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 1402 Rooya Ghaderi, Iraj Noravesh (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
