Developing a Conceptual Framework and Model for Assessing the Effectiveness of Internal Audit Controls in Iranian Commercial Banks

Abstract

Subject

In this study, the factors affecting the effectiveness of internal controls in Iranian commercial banks were identified and classified.

Research Method

The method of this qualitative research is "grounded theory"; for this purpose, focus groups were first used before conducting the research and conducting the background interviews. Therefore, nine internal audit managers with relevant experience were invited, then the insights gained from the focus group interviews were used to develop and improve the interview guide. The research sample in the qualitative part was provided to 9 professors and experts in the field of accounting and auditing and supervisors and internal auditors of banks, which led to the preparation of a questionnaire for interviews. In the quantitative part, 404 internal auditors, bank supervisors and accountants were selected by random method. The face and content validity of this tool was approved by experts and its reliability was calculated to be 70 percent, and the data were analyzed using exploratory factor analysis.

Discussion plan

In this research, an attempt was made to determine the subjective meanings of the studied stakeholders of the effectiveness of internal auditing in Iranian commercial banks and the effective determination of the effectiveness of auditing in Iranian commercial banks, based on the perspective of the studied stakeholders, and the consequences of the effectiveness of internal auditing in Iranian commercial banks, based on the perspective of the studied stakeholders. The results showed that the subjective meanings and factors affecting the effectiveness of auditing are based on six categories as follows: Internal audit unit staff, internal audit system, organization management, organizational facilities, stakeholders, and quality of accounting records.

Conclusion

Based on the results of this study, commercial banks can identify factors affecting the effectiveness of internal auditing in the form of issues such as staff, internal audit system, management and organizational facilities, accepting stakeholders' opinions, and trying to use reliable and quality accounting system information.