Independent Auditors' Evaluation of Internal Audit Functions

Subject Areas : Behavioral research methodology in accounting and auditing

Khadijeh Khodabakhshi Parijan ^{1 *} , Ali Gerami ²

1 - Assistant Professor, Department of Accounting, Faculty of Humanities, West Tehran Branch, Islamic Azad University, Tehran, Iran
2 - PhD. Student, Department of Accounting, Faculty of Humanities, West Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2024-06-04 Accepted : 2024-11-16 Published : 2025-01-08

Keywords: Independent auditor, Internal audit, Desai analytical model, Iranian certified public accountants, Work performance.,

Abstract :

Purpose: This study evaluates internal audit tasks as assessed by independent auditors
to empirically demonstrate how factors related to these tasks can influence independent auditors' evaluations and their level of reliance on the work of internal auditors.

Method: To conduct this study, the Desai analytical model was used and the data required to test the hypotheses were collected by distributing questionnaires to members of the Iranian Society of Certified Public Accountants, who constituted the statistical population of the study. A total
of 124 questionnaires were distributed in 2023 and 2024, and 98 completed questionnaires were analyzed.

Findings: Independent auditors tend to be more sensitive to negative evidence. However, they often struggle to assess internal audit tasks when confronted with contradictory evidence, and they do not evaluate negative evidence to the extent that the analytical model of this study suggests. In fact, independent auditors often struggle to assess conflicting evidence consistently, which results in an over-reliance on the work of internal auditors.

Conclusion: Independent auditors can enhance their decision-making by utilizing the research analytical model to evaluate various indicators of internal audit functions, particularly when faced with conflicting evidence regarding the roles of internal auditors. In addition, independent auditors can utilize the findings from the research analytical model to assess the effectiveness of internal audit functions and the extent to which they can rely on the work of the internal audit unit.

 

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