Vahid Mennati; Okhtharoon Alipour
Abstract
Objectivity is one of the four fundamental principles of internal auditors Code of Ethics. In 2010, The Institute of Internal Auditors (IIA) introduced the Value Proposition and objectivity is one of the three core elements of it. Also, according to Auditing Standard No. 610, objectivity is one of the ...
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Objectivity is one of the four fundamental principles of internal auditors Code of Ethics. In 2010, The Institute of Internal Auditors (IIA) introduced the Value Proposition and objectivity is one of the three core elements of it. Also, according to Auditing Standard No. 610, objectivity is one of the main components of internal auditing. Use of internal Audit Function (IAF) as a Management Training Ground (MTG) is in companies that internal auditors are promoted to executive positions. This can impair their objectivity and affect the reliance of independent auditors on their work. So the purpose of this study is to investigate the level of the External Auditor’s Reliance Decision on the Internal Auditors Function as a MTG. The purpose of this study is to investigate the reliance of external auditors on the work of internal auditors according to the strategy of MTG. Participants of this study are External auditors including partners, managers, senior supervisors, and senior auditors of Iranian audit firms. In this survey, 100 questionnaires were collected. The results of the study show that external auditors perceive internal auditors employed in an IAF used as a MTG to be less objective. The results also showed that external auditors perceive the competence and due professional care of IAFs used as a MTG less than other IAFs.
Mohammad Reza Nikbakht; Zabihollah Rezaee; Vahid Mennati
Abstract
The modern internal auditing has recently been considered in Iran. Therefore, many of its aspects, including internal audit quality(IAQ) and Internal audit quality improvement strategies(IAQIS), have not been clarified yet. Also, limited areas of IAQ have been considered in previous research. In order ...
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The modern internal auditing has recently been considered in Iran. Therefore, many of its aspects, including internal audit quality(IAQ) and Internal audit quality improvement strategies(IAQIS), have not been clarified yet. Also, limited areas of IAQ have been considered in previous research. In order to explain and describe the various aspects of IAQ and IAQIS, we have interviewed internal audit stakeholders. So, by using the qualitative approach and grounded theory, internal audit stakeholders (user, executive, regulators and standard setter) were studied for the first time in Iran. In this regard, 33 people were interviewed from late 2016 to early 2017. In addition, in this regard, 30 papers and seminars which published in Iranian professional magazines that reflect the viewpoints of the above-mentioned stakeholders were also used. The data were analyzed by using the open coding, axial coding & selective coding approach that is specific to the grounded theory and major categories, categories, and subcategories (concepts) were extracted. Using a system model approach that includes inputs, process, outputs, outcomes and contextual factors, the IAQIS model was designed. The model incorporates multidimensional of IAQIS. Strategies include inputs, performance, outputs, and contextual factors which are affecting IAQ. Due to the gradual expansion of the modern internal auditing in Iran in recent years, to achieve and improve IAQ, these multidimensional strategies can apply in engagement level, internal audit function level, firm level and national level.
