The role of stakeholders' perception in internal audit status: the case of Iran
Journal of Accounting in Emerging Economies
ISSN: 2042-1168
Article publication date: 30 November 2021
Issue publication date: 7 July 2022
Abstract
Purpose
The purpose of this study is to explore the internal audit actors and stakeholders' perceptions of the IA status in Iranian companies, and those actors and stakeholders' roles in shaping the current situation of IA in Iran.
Design/methodology/approach
This paper uses the interpretive qualitative method. Data comprises of semi-structured interviews with board of directors, audit committees, chief executive officers and chief audit executives. The paper analyzes internal audit policy documents, reports and legislations.
Findings
The results illustrate that the internal audit in Iran is perceived as a “perfunctory” practice among its stakeholders due to being recognized as an inefficient process. The key actors and stakeholders in internal audit process–including executive and board managers, audit committee members and chief audit executives–play important roles in shaping the current status of internal audit via their perceptions and actions.
Practical implications
The fact that internal audit in Iran is perceived as an inefficient process and is used as a perfunctory practice highlights the importance of addressing this issue at the standardization and regulation level. The deficits in the roles of key actors and stakeholders need to be considered as the legislative guide in different levels.
Originality/value
Prior studies mostly focus on the role of internal audit in organizations. In contrast, this study focuses on the role of key actors and stakeholders of internal auditing process in shaping the current perceived role of internal audit in organizations. Also, the study examines an emerging economy, which differs from advanced economies in important ways, including regulations, organizational culture, internal control structure and internal audit.
Keywords
Citation
Mashayekhi, B., Jalali, F. and Rezaee, Z. (2022), "The role of stakeholders' perception in internal audit status: the case of Iran", Journal of Accounting in Emerging Economies, Vol. 12 No. 4, pp. 589-614. https://doi.org/10.1108/JAEE-03-2020-0064
Publisher
:Emerald Publishing Limited
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