The purpose of this research is to investigate the association between the Audit committee’s oversight of the Internal Audit function (IAF) and the nature of IAF activities. In this paper, it is assumed that regarding the role of the Audit committee in preventing financial misstatements leads to an increase in the focus of IAF on Internal controls. Based on the survey of 140 Chief Audit Executives (CAE) of Tehran Stock Exchange listed companies in 2020, research variables have been measured. A regression model is used to test the research hypothesis. Based on the opinions of CAEs participating in this research, the results show that the Audit committee’s oversight of the Internal Audit function leads the IAF toward a more Internal-controls-oriented focus. Also, the size of the company, financial leverage, ratio of inventories and the significant weakness in Internal controls have a positive and significant effect on the IAF Internal-controls-oriented focus. Finally, the results show that the sales growth rate and operating cash flow do not have a significant effect on the IAF Internal-controls-oriented focus.

Internal Audit function (IAF) is one of the main Internal mechanisms of corporate governance that helps the organization achieve its goals. Effectiveness is one of the most important aspects of Internal Auditing that most of its dimensions have not previously been studied in Iran. This research is aimed to investigate effects of some basic elements on effectiveness of IAF. So, this study examines the effect of five factors (Internal Auditor Competence, Internal Auditing Independence, Management Support Of Internal Audit, Size Of Internal Audit Function, Coordination Between Internal and External Auditors) including 29 sub factors on the effectiveness of IAF. The sample consists of 131 Internal Auditors of firms with an active IAF. From one hand, the level of IAF effectiveness is measured through participants (using 29 sub factors), and from the other hand, it is questioned through the information related to IAF characteristics. Then, the relation between IAF characteristics (independent variables) and the level of IAF effectiveness (dependent variable) is tested. The results from the analysis of collected data show that all the five dimensions have a positive and significant effect on the IAF effectiveness.

 AbstractThe Securities and Exchange Organization (SEO) Of Iran has considered the mission of the Internal Audit to provide independent and impartial assurance and consulting services, in order to add value and improve operations. and, in 2013, all listed firms to the Tehran Stock Exchange (TSE) and over-the-counter (IFB) has required to form Internal Audit. The purpose of research is to investigate the impact of effectiveness of Internal Audit on the quality of Internal Audit in companies listed in TSE. For this purpose, 12 hypotheses were developed. It is worth mentioning that the "effectiveness of Internal Audit" variable was classified into three sections including "competence, independence, realism" and "consequences" into three sections including "management support, support and acceptance of the Auditor and interdepartmental coordination of Internal Auditors". It is also worth mentioning that collecting information regarding the "quality of Internal Audit" variable. due to insufficient disclosure of information, requires to each firms, either the manager or one of the employees of the Internal Audit or of the committee members was asked to complete a questionnaire consisting of 32 Internal Audit quality criteria in 2021. The data were analyzed through structural equation modeling using SmartPLS software. Findings show that the records and results of Internal Audit effectiveness have a positive and significant effect on the quality of Internal Audit. This study contributes to agency theory by highlighting factors related to Internal Audit effectiveness and quality Audit outcomes to protect the best interests of managers while fulfilling corporate governance requirements.

Internal Audit has a critical role in managing and conducting the organization's operations. Organizations with an efficient and effective Internal Audit department, can more accurately evaluate the risks of businesses, processes and commercial systems. In current research, by using Delphi research methodology and a survey of 210 professional and academic experts, it was tried to identify the Internal Audit quality criteria approved by the experts, in order to design a suitable model for the Iranian environment. For this puepose, based on the literature review and the research background, 29 criteria were identified which were classified in four sections including: a. Competence of Internal Auditors with eleven criteria; b. Independence of the Internal Audit department with eight criteria; c. Criteria related to the performance of Internal Audit work with seven criteria; and d. Other criteria with three criteria. Data were analyzed by utilizing “ R” software with a confirmatory factor analysis model. The results of the study indicate that 18 criteria have been adopted, which provides a model for the quality of Internal Audit.

The present study examines the ability of Internal Auditors in motivating the audience, conveying the message and oral presentation on the acceptance of their recommendations by the Internal Auditor, members of the Audit committee and members of the board. The present research in terms of purpose is in the category of applied research, In terms of method and nature, it is of descriptive-survey type. The statistical population includes Internal Auditors, Internal Audit managers and Audit committee members. The research has happened in the first quarter of year 1400. The statistical population of the study is indeterminate and the statistical sample was determined randomly using the Cochran formula of 384 people. For testing our hypotheses we used Structural equation modeling The results of hypothesis testing showed that motivation and message transmission skills have a positive and significant effect on the acceptance of Internal Auditors› suggestions. The results of the study indicate that the application of persuasive skills by Internal Auditors can increase the likelihood of accepting their suggestions. The results also indicated that gender, experience and organizational status were associated with acceptance of Auditors› recommendations.

Internal Auditing is conducted in a variety of legal and cultural environments, and for organizations with different goals, sizes, complexity and structure, both Internally and externally. According to the adoption of the Internal control instruction of the stock exchange in 2012 and the formation of Internal Auditors Association at the same year, Internal Audit profession in Iran seems new. In this study, by adopting a qualitative research approach and using the classical method of grounded theory, we examine the perception of Internal Audit from Internal Audit managers point of view as professional executives of Internal Auditing profession, and its compliance with The Institute of Internal Auditors standards. The results of the survey indicate that from Internal Audit managers view in Iran, there is a divergence of Internal Audit function from the definition of Internal Audit in The Institute of Internal Auditors standards and the need to redefine it in Iran.

Undoubtedly, Internal Auditing has an effective situation on the corporate governance structure. Internal Audit by timely identification of weaknesses in Internal controls has a significant role in reducing fraud, manipulating of information, enhancing financial reporting and increasing the efficiency and effectiveness of the company. After the approval of the Internal controls and the Internal Auditing charter in 1391(Iranian calendar) by the security exchange organization, the Internal Audit challenges and pathology are important. Many experts and managers in this area believe that many challenges, especially in the early years, has threatened Internal Auditing and has prevented its effectiveness. The present research, which is one of the survey research, conducted an interview, review of previous studies, produced, and tested a questionnaire using actual Internal Audit information. The society and the statistical sample included the directors and heads of Internal Audit, financial experts and members of the Audit committees of the companies listed in the Tehran stock exchange and OTC of Iran. The number of respondents to the Audit committee questionnaires has been sent 88 times three times. The weakness oversight of the security exchange organization, the lack of Internal Auditors' salaries and benefits, and finally, the not giving bonus are challenges of Internal Auditors. Additionally, Internal Auditors training, accreditation testing, lack of co-responsibility in several companies, revision of the Internal Audit charter, rewarding, ongoing meetings with independent Auditors, and follow up of weaknesses in Internal controls by the annual general meeting include are ways to improve the performance of Internal Audit.

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.

The professional power of Internal Auditing by a professional thinking and within the framework of economic logic, the supervising function of Internal Auditing can be executed only when the Internal Auditing possesses the professional power to perform its duties effectively in necessary occasions through observing professional standards to provide benefits to public community and help its own organization. The objectives of this study has been to identify the factors affecting professional power of Internal Auditing and the current status of such factors in Iran. Considering the nature of the research, two kinds of research plan has been applied. In the first research plan, through a descriptive field survey, 30 factors affecting the professional power of Internal Auditing have been identified and their affecting mechanisms have been described. In the second research plan, a correlation research plan has been used to gather historical evidences to serve as scientific support for the first research plan. Based on the findings of research, in view of the experts of the profession, the found results indicate general effects of these factors on professional power of Internal Auditing. the Internal Auditing assistance in preparing financial statements has a positive and meaningful effect on professional power of Internal Auditing and each of these power factors are considered to some extent effective in experts’ opinions and considered effective by organizations. According to the results, the Internal Auditing assistance has a negative effect on Auditing fees and by increasing the power of Internal Auditing the relevant fees will be reduced.

This research aims to provide a systematic review of the effect of independence of Internal Audit unit on the effectiveness or performance of Internal Audit by meta-analysis method. For this purpose, studies Internal and external performed over the period of 1390-1400 were reviewed and discussed. The present meta-analysis has provided a statistical combination of the findings of the previous studies on the effect of independence of Internal Audit unit on Internal Audit performance. The results showed that most studies had a significant effect size. Regarding the measurement error of the homogeneity test (less than 0.05), the studied research works are homogenous. It suggests the approval of constant effects model. On the other hand, constant effect model was evaluated at a medium level based on Rosenthal Table. Meanwhile, the measurement error of the constant effect model is less than 0.05 and it approves the research hypothesis. So, Internal Audit independence is effective in Internal Audit performance.