The effect of professionalization of internal audit on corporate governance

Subject Areas : Role of accounting in contracts and in the political process

Asghar sif khamseh ^{1 *} , Abbas Ali Daryaei ²

1 -
2 - Associate Professor of Accounting Department, Imam Khomeini International University (IKIU), Qazvin, Iran.

Received: 2025-04-07 Accepted : 2025-06-19 Published : 2025-07-22

Keywords: professionalization, internal audit, corporate governance ,

Abstract :

       Objective: This study examines the effect of internal audit professionalization on corporate governance. Internal audit professionalization affects the effectiveness of internal audit.

       Method: Using a questionnaire of three elements of internal audit professionalization, including compliance with the standards of the International Institute of Internal Auditors, membership in the International Institute of Internal Auditors, and professional certifications, the effect of internal audit professionalization on corporate governance is examined, and a set of control variables are also examined, including company size, financial leverage, CEO duality, and audit committee quality.

       Findings: Multiple regression analysis was used to examine the relationship between independent and dependent variables. The findings show that internal audit professionalization can have a significant impact on corporate governance, and improves internal audit performance.

      Conclusion: This study contributes to the role of internal audit professionalization in corporate governance and fills the gap in research related to the impact of internal audit professionalization elements and the effect of internal audit professionalization on corporate governance.

Internal auditing, with characteristics such as compliance with the standards of the International Internal Auditors Association, membership in the International Internal Auditors Association, and holding international professional certifications, can influence corporate governance and improve the performance of organizations whose internal audits comply with professional internal auditing standards.

 

References:

منابع فارسی و انگلیسی :
بهشتی لنگرودی، احمد (1390) . رابطه حاکمیت شرکتی و بحران مالی موسسات واسطه گر مالی، مجموعه مقاالات بیست و سومین همایش بانکداری اسلامی.
پاک مرام، عسگر؛ متوسل، مرتضی و توحیدی، فرحناز (1391) . حسابرسی، بحران مالی و حاکمیت شرکتی : متمایز اما مرتبط، اولین همایش منطقه ای رویکردهای نوین حسابداری و حسابرسی، بندرگز، دانشگاه آزاد اسالامی واحد بندرگز.
جامعی، پریسا (1394). تأثیر حاکمیت شرکتی روی بحران های مالی شرکتها و بانک های ایران، دومین کنفرانس سراسری پژوهش های مدیریت و مهندسی صنایع، شیراز، پردیس بین الملل توسعه ایده هزاره.
جلالی، محبوبه و جلالی، فاطمه (1392). تاثیربرخی مولفه های حاکمیت شرکتی برورشکستگی مالی شرکتها، اولین کنفرانس ملی حسابداری و مدیریت، شیراز، موسسه بین المللی آموزشی و پژوهشی خوارزمی،
Abdurrouf, M. A. (2011). The relationship between Corporate Governance and value of the firm in developing countries: Evidence from Bangladesh. The International Journal of Applied Economics and Finance, 5(3), 237–244.
Alleyne, P., Howard, M., & Greenside, D. (2006). The role of audit committees in Barbados, Corporate Governance, Vol. 6, No. 5, pp.567-581.
Cadbury, A. (2000). The Corporate Governance Agenda, Journal of Corporate Governance, Practice-Based Papers, 8: 7–15.
Capital Market Authority (CMA). (2015). Code of Corporate Governance for Public Listed Companies December2015. Available at: file:///C:/Users/zosman/Downloads/(3) %20.
Gao, S., Gao, G., & Zhang, T.X. (2008). ‘Corporate governance reform and firm performance: Evidence from China,’ Research in Accounting in Emerging Economies, Vol., 8, pp.189-209.
Gramling, A.A., Maletta, M. J., Schneider, A., &Church, B. K. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research,’ Journal of Accounting Literature 23, pp.194–244.
Holm, C. & Laursen, P.B. (2007). Risk and control developments in corporate governance: changing the role of the external auditor? Corporate Governance: An International Review, Vol. 15, No. 2, pp. 322-333.
Institute of Internal Auditors-UK (1978). Standards and Guidelines for the Professional Practice of Internal Auditing, IIA-UK ed. (Statement of Responsibilities).
Keasy, K. & Wright, M. (1997). 'Corporate Governance –Responsibilities, Risks and Remuneration,' John Wiley & Sons, New York.
Kibet, P. K. (2008). A survey on the role of internal audit in promoting good corporate governance in state owned enterprises. Unpublished thesis, University of Nairobi.
MacMillan, K., Money, K., Downing, S., & Hillenbrad, C. (2004). “Giving Your Organization SPIRIT: An Overview and Call to Action for Directors on Issues of Corporate Governance,” Journal of GeneralManagement, 30: 15–42.
Pandya, H. (2011). Corporate governance structures and financial performance of selected Indian Banks. Journal of Management and Public Policy, 2(2), 4–22
Roe, M. (2004). “The Institutions of Corporate Governance”, Discussion Paper No. 488, Harvard Law School.
Siddiqui, J. & Podder, J. (2002). "Effectiveness of bank audit in Bangladesh", Managerial Auditing Journal, Vol. 17 Issue: 8, pp.502-510, https://doi.org/10.1108/02686900210444833
Beheshti Langroodi, Ahmad (2011). The relationship between corporate governance and financial crisis of financial intermediary institutions, Proceedings of the 23rd Islamic Banking Conference.IN Persian
Pakmaram, Asgar; Motavasel, Morteza and Tohidi, Farahnaz (2012). Auditing, financial crisis and corporate governance: distinct but related, First Regional Conference on New Approaches to Accounting and Auditing, Bandargaz, Islamic Azad University, Bandargaz Branch. IN Persian
Jamei, Parisa (2015). The impact of corporate governance on financial crises of Iranian companies and banks, Second National Conference on Management and Industrial Engineering Research, Shiraz, International Campus for the Development of the Millennium Idea. IN Persian
Jalali, Mahboobeh and Jalali, Fatemeh (2013). The impact of some components of corporate governance on financial bankruptcy of companies, First National Conference on Accounting and Management, Shiraz, Kharazmi International Educational and Research Institute, IN Persian