Factors Affecting Cooperation and Trust between Internal and Independent Auditors

Document Type : Research Paper

Authors

Department of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

10.22103/jak.2024.22772.4014

Abstract

Objective: The purpose of this study, in accordance with Auditing Standard No. 610, is to examine the factors influencing trust and cooperation between internal and independent auditors, who operate as integrated resources within the lines of defense of organizations.
 
Method: The present study is applied in terms of purpose, and its data were collected through a questionnaire. The statistical population consisted of independent auditors (practicing certified public accountants) and internal audit managers of companies listed on the Tehran Stock Exchange and the Iran Over the Counter in 2022. The responses of 562 internal and independent auditors were analyzed using structural equation modeling (SEM).
 
Results: The findings indicate that several key factors—namely professional qualifications, quality of work, professional experience, use of information technology, evaluation of internal controls, and risk identification and management by internal auditors—were not achieved at a sufficient level to foster trust and cooperation between internal and independent auditors. Consequently, the desired level of collaboration between these two professional groups was not observed. However, impartiality and, to a lesser extent, the gender of internal auditors, were found to have a significant positive effect on trust and cooperation. Conversely, the quality of education of internal auditors exhibited a significant negative effect on the level of trust and collaboration between the two groups.
 
Conclusion: The findings of the study indicate that the failure of internal auditors to adequately attain most of the factors influencing trust and cooperation has resulted in a lack of sufficient trust and collaboration between the two groups of auditors. However, objectivity, gender, and the quality of internal auditors’ education were identified as significant factors affecting trust and cooperation between internal and independent auditors.

Keywords

Main Subjects

References

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History

  • Receive Date: 11 February 2024
  • Revise Date: 21 June 2024
  • Accept Date: 23 July 2024

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