Document Type : Research Paper
Abstract
Purpose: The objective of this research is to present and examine a structural model of cultural indicators' influence on the development of internal auditing in Iran.
Method: This study presents a structural model that elucidates the cultural indicators influencing the development of internal auditing practices within the unique context of Iran. In the design of the cultural model for the development of internal auditing in Iran, descriptive-survey research method has been employed. The fit of organizational cultural factors was assessed using Structural Equation Modeling (SEM) with PLS software.
Findings: The results of this study indicate that influential cultural components (organizational factors, extra-organizational factors, individual factors, managerial factors, and legal and regulatory factors) have significant positive effects on the development of internal auditing, with coefficients of 1.6, 0.33, 0.4, 0.24, and 0.09, respectively, at a one percent significance level.
Conclusion: The findings of this study suggest that organizational factors (including organizational background and culture), extra-organizational factors (such as industry norms and global standards), individual factors (such as competencies and individual behaviors), managerial factors (including effective management practices and leadership), and the development of laws and regulations are vital aspects for the development of internal auditing in Iran.
Implications: The main concern highlighted in this study is the lack of a suitable cultural model that can strengthen the development of internal auditing in Iran. This concern arises from the recognition that the effectiveness of internal auditing is not solely determined by technical and procedural aspects but deeply intertwined with the organizational culture.
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