Evaluating the Effectiveness Model of Internal Auditors' Ethical Courage Functions

Document Type : Original Article

Authors

1 Ph.D.Student in Accounting, Department of Accounting, Islamic Azad University,South Tehran Branch, Tehran, Iran

2 Associate Professor of Accounting, Azad University, South Tehran Branch

10.22034/iaas.2022.168251

Abstract

Effectiveness is an important and significant concept in evaluating the performance of any part or unit of the organization to achieve goals with the least resources. Organizational voice is considered as a motivating or inhibiting factor in job functions that if it is accompanied by sufficient knowledge of individual characteristics and functional content of the organization, it can lead to greater effectiveness in individual functions. The Purpose of this research is evaluating the effectiveness model of internal auditors' ethical courage functions. This research is methodologically based on the result, developmental and in terms of data type is hybrid. In the qualitative part of the research, through meta-analysis and Delphi analysis, , and then, based on Delphi analysis, an attempt was made to prioritize the components approved by the qualitative part during the process of analyzing the comprehensive interpretive structural model in order to determine the most effective components identified. The target population in this study in the qualitative part included 12 accounting and financial management specialists at the university level and in the quantitative part were 20 internal auditors of Tehran Stock Exchange companies. The results showed that the most effective factor of ethical courage in the effectiveness of internal audit is positive perception; Is self-efficacy and a source of internal control that are at the third level of matrix evaluation. Although this area is of research importance in terms of developing theoretical literature and practical basis in reducing the financial reporting gap with the independent auditor, but less internal audit research has addressed this issue and conducting this research and developing it at the professional level.    

Keywords


احمدی، غزل، نیازآذری، کیومرث، صالحی، محمد. (1398). "اثربخشی آموزش سرمایه روانشناختی بر سکوت و آوای سازمانی در دانشگاه آزاد استان مازندران"، فصلنامه توسعه آموزش جندی‌شاپور اهواز، 10(۱): 11-22.
بابایی‌خلیلی، جواد، عبدلی، محمدرضا، ولیان، حسن. (1400)." استقلال حسابرس داخلی؛ رویکرد فرآیندهای کاهنده سکوت و شجاعت حسابرسان داخلی"، پژوهش‌های حسابداری مالی و حسابرسی، ۱۳(۵۱): ۱۳۳-۱۵۴
پاکساز، محمدحسین، عبدلی، محمدرضا. (۱۴۰۰). "ارائه مدل پیامدهای درونی اثربخشی حسابرسی داخلی براساس تحلیل مدل فراگیر تفسیرگرایانه"، دانش حسابرسی، ۲۱(۸۲): ۳۷-۵۶.
پاک‌نژاد، نوراله، چناری، وحید، آقاداوود، سید رسول، احمدی، سید علی اکبر. (۱۴۰۰). "ارائه الگوی توسعه شجاعت اخلاقی کارکنان"، فصلنامه اخلاق در علوم و فناوری، ۱۶(۲): ۹۲-۹۸.
جامعی، رضا، جعفری، صدیق. (1399). "تاثیر ویژگی های کمیته حسابرسی برای توصیه های حسابرسی داخلی در شرکت های پذیرفته شده در بورس اوراق بهادار تهران"، مطالعات حسابداری و حسابرسی، انجمن حسابداری ایران، 9(33):57-74 
رحمانی، علی، محمودخانی، مهناز، (1398). "تاثیر ذینفعان در ارزیابی اثربخشی حسابرسی داخلی ایران"، مطالعات حسابداری و حسابرسی، انجمن حسابداری ایران، 8 (31):23-40
صفرزاده، محمدحسین، کریمداد، علیرضا. (1399). "بررسی عوامل مؤثر بر شجاعت اخلاقی حسابرسان داخلی"، دانش حسابداری مالی، 7(1): 133-155
کاووسی، اسماعیل، عبدلی، محمدرضا، ولیان، حسن. (1399). "تأثیر مضمون‌های فرهنگ اخلاق‌مداری بر بی‌طرفی حسابرس: تحلیلی بر ادراک رهبری تحول‌گرا"، مدیریت فرهنگ سازمانی، 18(4): 635-659. 
منتی، وحید، زمان، الهه. (1398). "عوامل مؤثر بر اثربخشی حسابرسی داخلی"، پژوهش‌های تجربی حسابداری، 9(4): 247-270.
Ahmadi, G., Azeri, K., Salehi, M. (2019). "The Effectiveness of Psychological Capital Training on Silence and Organizational Voice in Mazandaran Azad University". Educational Development of Judishapur, 10(1): 11-22. https://doi.org/10.22118/edc.2019.91020 (In Persian)
Alqudah, H.M., Amran, N.A. and Hassan, H. (2019)." Factors affecting the internal auditors’ effectiveness in the Jordanian public sector: The moderating effect of task complexity", EuroMed Journal of Business, 14(3): 251-273. https://doi.org/10.1108/EMJB-03-2019-0049
Alzeban, A. and Gwilliam, D. (2014). "Factors affecting the internal audit effectiveness: a survey of the saudi public sector, Journal of International Accounting, Auditing and Taxation", 23(2), 74-86.
Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness, International Journal of Auditing, 13(1), 43–60.
Armstrong, M. B., Ketz, J. E., & Owsen, D. (2003)." Ethics education in accounting: Moving toward ethical motivation and ethical behavior". Journal of Accounting Education, 21(1), 1–16
Burke, R. J. (2013). Encouraging voice: Why it matters. In R. J. Burke & C. L. Cooper (Eds), Voice and Whistleblowing in Organizations: Overcoming Fear, Fostering Courage, and Unleashing Candour., (pp. 3–71), Edward Elgar Publishing, 374
Carrera, N. and Van Der Kolk, B. (2021). "Auditor ethics: do experience and gender influence auditors’ moral awareness?", Managerial Auditing Journal, 36(3): 463-484. https://doi.org/10.1108/MAJ-07-2020-2745
Cassematis, P. G., Wortley, R. (2013). "Prediction of whistleblowing or non‐reporting observation: The role of personal and situational factors". Journal of Business Ethics, 117(3): 615–634.
Cohen, A. and Sayag, G. (2010). "The effectiveness of internal auditing: an empirical examination of its determinants in Israeli organizations", Australian Accounting Review, 20(3), 296-307.
Detert, J. R. & Burris, E. R. (2007)." Leadership Behavior and Employee Voice: Is The Door Really Open?" Academy of Management Journal, 50 (4): 869–884.
DiMaggio, P.J. and Powell, W.W. (1983). "The iron cage revisited: institutional isomorphism and collective rationality in organizational fields", American Sociological Review, 48(2), 147-160.
Edmondson, A. (2002)." Managing the risk of learning: psychological safety in work teams". International Handbook of organizational teamwork, London: Blackwell
Engemann, K, N., Scott, C, W. (2018)." Voice in safety-oriented organizations: Examining the intersection of hierarchical and mindful social contexts", Human Resource Management Review, https://doi.org/10.1016/j.hrmr.2018.05.002.
Everett, J., & Tremblay, M. S. (2014). "Ethics and internal audit: Moral will and moral skill in a heteronomous field". Critical Perspectives on Accounting, 25(3): 1–16.
Goldberg, C. B., Clark, M. A., Henley, A. B. (2011). "Speaking up: "A Conceptual Model of voice responses following the unfair treatment of others in non-union settings". Human Resource Management, 50(1), 75–94.
Hames, K. M. (2012)." Employees’ voice climate perceptions and perceived importance of voice behavior: links with important work-related outcomes". Thesis of Bachelor of Psychology (Honors), Murdoch University; 190-215.
Hass, S., Abdolmohammadi, M.J. and Burnaby, P. (2006). The Americas literature review on internal auditing, Managerial Auditing Journal, 21(8): 835-844. https://doi.org/10.1108/02686900610703778
Institute of chartered accountants of England and wales (icaew). (2021)." How to Audit Operational Resilience", Business and Management Faculty.
Institute of Internal Auditors (IIA). (2015). Global Internal Audit Common Body of Knowledge (CBOK) Practitioner Study. The IIA Research Foundation. Altamonte Springs, FL: IIA. Available at: http://www.theiia.org/CBOK.
James, K. (2003). "The effects of internal audit structure on perceived financial statement fraud prevention". Accounting Horizons, 17(4): 315–327.
Journeault, M., Levant, Y., & Picard, C.-F. (2020). "Sustainability performance reporting: A technocratic shadowing and silencing". Critical Perspectives on Accounting, 74(2): 102145. https://doi.org/10.1016/j.cpa.2019.102145
Khelil, I., Hussainey, K., & Noubbigh, H. (2016). "Audit committee–internal audit interaction and moral courage". Managerial Auditing Journal, 31(4–5): 403–433.
Liu, D., Wu, J., Ma, J. (2009). "Organizational silence: A survey on employees working in a telecommunication company". Computers & Industrial Engineering, IEEE Conference Publications,21(2): 1647 – 1651.
Mohammadi, S. (2020). "Structural analysis the effect of organizational silence & voice on job engagement and organizational health of female nurses". Women in Development & Politics, 18(4): 601-617. https://doi.org/10.22059/jwdp.2021.315084.1007930 (In Persian)
Mousavi kasha, Z., Mohseni Kabir, Z. (2019). "Investigating the Impact of Organizational Silence on Professional and Ethical Performance of Auditors", journal of Value & Behavioral Accounting, 4(7): 135-180
Muñoz, Á, S., López, M, F., Vieitez, J, C. (2018). "Self-efficacy and anxiety in female hospital healthcare workers", Ansiedad y Estrés, https://doi.org/10.1016/j.anyes.2018.08.002
Nikbakht, M., Ghods Hasan Abad, M. (2018). Internal audit function from the internal audit managers view: Classical method of grounded theory. Journal of Management Accounting and Auditing Knowledge, 7(28): 187-200. (In Persian).
Nwankwo, O, D., Nwankwo, O., Gift, Ch., Ohakwe, G. (2020)." Fear of Negative Evaluation and Self Efficacy as Social-Psychological Predictors of Job Involvment of Physically Changed Persons in Anambra State, Eastern Nigeria (Biafra)", Psychology and Human Behaviour.
Okhravi Joghan, A., Rahimian, N., GharehDaghi, M. (2018)." Factors Affecting the Internal Audit Effectiveness in the Viewpoint of Audit Committee Members". Accounting and Auditing Review, 25(3): 311-326 (In Persian)
Paksaz, M, H., Abdoli, M, R. (2021). "Presenting the model of internal consequences of internal audit effectiveness based on the analysis of the comprehensive interpretive model", audit knowledge,21(82): 56-37. (In Persian).
Rahmani, A., Mahmoudkhani, M. (2017). "Investigating the components of assessing the internal auditi effectiveness in Iran". Journal of Management Accounting and Auditing Knowledge, 6(24), 57-78. (In Persian)
Safarzadeh, M., Karimdad, A. (2020). "The Drivers Affecting Internal Auditors' Moral Courage". Journal of Financial Accounting Knowledge, 7(1): 133-155 (In Persian)
Turetken, O., Jethefer, S. and Ozkan, B. (2020). Internal audit effectiveness: operationalization and influencing factors, Managerial Auditing Journal, 35(2): 238-271. https://doi.org/10.1108/MAJ-08-2018-1980
Van Dyne, L. LePine, J. A. (2001). Helping and voice extra-role behaviour: evidence of construct and predictive validity. Academy of Management Journal, 41, 108–19.