Designing Casual Model to Eliminate Weak Points of Implementing Internal Controls in Educational Institutions Fuzzy Dimetal Technique
محورهای موضوعی : Financemohsen farahmand 1 , Mohammad Mahmoodi 2 , Amir Reza Keyghobadi 3
1 - Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran
2 - Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran
3 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran
کلید واژه: internal controls implementation weak point, Educational institutions, Fuzzy Dimtel method,
چکیده مقاله :
Today, internal controls have grown so dramatically that we see its progress towards internal consulting in the company's risk management operations. The current research was carried out with the aim of designing a causal model to eliminate the weak points of implementing internal controls in educational institutions according to the Fuzzy Dimtel method. This research is of mixed type (qualitative-quantitative) in terms of nature and content. Information of this research is related to 15 experts in educational institutions (Azad University, higher education, non-profit institutions), which constitute the statistical sample. This research is descriptive in terms of data collection and analysis, practical in terms of purpose, and documentary in terms of method. In order to collect data, the tool of paired comparison questionnaire is used. The results of this research showed that the four main factors of risk components, operational risk, independence of the board of directors, and institutional ownership have an effect on the weak implementation of internal controls. Also, Dimtel's method showed that the factor of independence of the board of directors with an average influence of 18.740, the factor of institutional ownership with an average impact of 9.497 and the factor of risk components with an average impact of 8.742, are among the influential factors. On the other hand, operational risk factor with an influenced average of 14.975 is an influenced factor.
Today, internal controls have grown so dramatically that we see its progress towards internal consulting in the company's risk management operations. The current research was carried out with the aim of designing a causal model to eliminate the weak points of implementing internal controls in educational institutions according to the Fuzzy Dimtel method. This research is of mixed type (qualitative-quantitative) in terms of nature and content. Information of this research is related to 15 experts in educational institutions (Azad University, higher education, non-profit institutions), which constitute the statistical sample. This research is descriptive in terms of data collection and analysis, practical in terms of purpose, and documentary in terms of method. In order to collect data, the tool of paired comparison questionnaire is used. The results of this research showed that the four main factors of risk components, operational risk, independence of the board of directors, and institutional ownership have an effect on the weak implementation of internal controls. Also, Dimtel's method showed that the factor of independence of the board of directors with an average influence of 18.740, the factor of institutional ownership with an average impact of 9.497 and the factor of risk components with an average impact of 8.742, are among the influential factors. On the other hand, operational risk factor with an influenced average of 14.975 is an influenced factor.
Ahmad, H., Othman, R., & Jusoff, K. (2019). The effectiveness of internal audit in Malaysian public sector. Journal of Modern Accounting and Auditing, 5(9), 53–62. 10.22108/ https://doi.org/.2019.112553.1301
Al-Twaijry, A., Brierley, J., & Gwilliam, D. (2016). The development of internal audit in Saudi Arabia: An institutional theory perspective. Critical Perspectives on Accounting, 14(5), 507–531. https://doi.org/ 10.22108/NMRJ.2021.124800.2225
Alzeban, A., Gwilliam D. (2021). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of international accounting auditing and taxation. 23, 74-86. https://doi.org/ 10.22108/FAR.2019.112553.1301
Bahiraei, Afsaneh and Rahmani, Ali (2015). Internal Audit and assessing effectiveness of soft controls. The third international conference on applied research in management and accounting, Tehran, Shahid Beheshti University. 10.22059/ACCTGREV.2018.246549.1007759.[In Persian]
Behrouz, M., Forghani, M. A., & Kazemi, M. (2023). Prioritizing the Implementation Barriers of Prison Entrepreneurship Program from Employees’ Perspective (Case Study: Central Department of Kerman Prisons and Kerman Prison). Journal of System Management, 9(4), 27-40. 10.30495/JSM.2023.1980011.1773.[In Persian].
Brierley, J., El-Nafabi, H., & Gwilliam, D. (2016). The problems of establishing internal audit in the Sudanese public sector. International of Journal Auditing, 5(1), 73–87. https://doi.org/ 10.30495/JDAA.2223.699870
Burke, J., Hoitash, R., Hoitash, U., 2018. The use and characteristics of component auditors: Implications for US audits. Available at SSRN 3240212. 10.22108. https://doi.org/2020.119476.1529
Carson, E., 2019. Industry specialization by global audit firm network. The Accounting Rev. 84 (2), 355–382. 10.22108/FAR. https://doi.org/2020.119476.1529
Center for Audit Quality (CAQ), 2020. Comment letter in response to PCAOB request for public comment: Improving the transparency of audits: proposed amendments to PCAOB auditing standards and Form 2, PCAOB Rulemaking Docket Matter No. 29. https://pcaobus.org/Rulemaking/docket029/035b_caq.pdf.https://doi.org/10.30495/JDAA. 2023.702089
Cheraghi, Jamila and Nazaripour, Mohammad, (2011). Importance and effectiveness of internal auditing in manufacturer companies, case study of Kermanshah province, management international conference. 10.22108/JAS.2022.129099.2125.[In Persian].
Dee, C.C., Gunny, K., Lulseged, A., 2018. External audit work and audit quality (August 30, 2018). Abstract available at SSRN: https://ssrn.com/ abstract=3241793. 20.1001.1. https://doi.org/23223405.1391.4.1.6.2
Ekhlasmand, S. S., Fattahi, M., & Salavati, S. (2023). Identifying the Components and Indicators of Social Marketing in Small and Medium Businesses with a Resistance Economy Approach. Journal of System Management, 9(4), 1-12. 10.30495/JSM.2023.1979182.1766. [In Persian].
Fateh, M., Mohammadi, M., & Mousavi Moheb, S. M. (2023). Design a competency model for salespeople in food distribution industry of Iran. Journal of System Management, 9(4), 41-54. 10.30495/JSM.2023.1980096.1774.[In Persian].
Glaeser, S., Guay, W.R., 2017. Identification and generalizability in accounting research: A discussion of Christensen, Floyd, Liu, and Maffett (2017). J. Accounting Econ. 64 (2–3), 305–312. https://doi.org/ 10.30495.2022.698391
Jahanbani, Mustafa and Baqarpour and Shani, Mohammad (2012). Risk-based internal audit as a modern tool in the service of risk management, Iranian Society of Certified Accountants, Certified Accountant Quarterly, No. 9, pp. 11-92. 10.30495/FAAR.2022.697086. [In Persian].
Khatami Firouzabadi, M., Valizadeh, M., & Sajjadi, K. (2017). Make Decision for Selection Enterprise Resource Planning by Defines Key Performance Indicators (KPIs) and Analytic Network Process (ANP). Journal of System Management, 3(3), 1-16. 10.22108/FAR https://doi.org/.2020.119476.1529
Mehrani, Sasan (2012). Internal Audit, Iran Certified Accountant Association, Accountant Magazine, No. 141, pp 68-79. (DOI): 10.30495/JDAA.2022.693173.[In Persian].
Mihret, D., & Yismaw, A. (2018). Internal audit effectiveness: An Ethiopian public sector case study. Former audit partners on the audit committee and internal control deficiencies. The Accounting Rev. 84 (2), 559–587. 10.22108/NMRJ https://doi.org/.2022.133308.2486
Mohammad, Akram (2012). Identifying factors influential in internal audit effectiveness in government systems of Kurdistan Region of Iraq. MSc thesis in accounting, Imam Khomeini International University. 10.30495/JDAA.2023.699870.[In Persian].
Mohammad Taghizadeh, Samaneh (2020). Considering factors influential in effectiveness of internal auditing. MSc thesis in accounting. Valiasr University of Rafsanjan. 10.22108/NMRJ.2022.131270.2577.[In Persian].
Momenzadeh, Marzieh (2011). Considering role and effectiveness of internal audit in university. MSc thesis in accounting, Al-Zahra University. 10.22108/NMRJ.2022.131270.2577.[In Persian].
Pourheidari, Omid and Rezaie, Omid (2018). Considering factors influential in internal audit value added in companies accepted in Tehran Stock Exchange. Accounting and Auditing Research Quarterly. No. 14. 10.22034/IAAR.2012.104688.[In Persian].
Rezaee, G., & Karimi, F. (2023). An Investigation of Institutional Quality Conditions and the Export of Intermediate Goods by Developing Countries. Journal of System Management (JSM), 9, 4. 10.30495/JSM.2023.1978563.1767.[In Persian].
Shamshiri Yeganeh, Somayeh (2021). Factors influential in effectiveness of internal audit in Iranian Oil Company and subsidiary companies. MSc thesis in accounting. Islamic Azad University, Central Tehran Branch. 10.22108/FAR.2019.112553.1301.[In Persian].
Spira, L.F.,&Page, M.(2017).”Risk management: the relevention of internal control and the changing rol of internal audit. “Accounting, Auditind, and Accountability journal. 16,640-661. https://doi.org/10.30495/.2023.702289
Yeganeh and Maqsoodi (2015). Relation of audit quality and renewal of financial statements resulted from interest management and cash flow management in Tehran Stock Exchange, Financial accounting scientific research quarterly, eight year/ no. 92, spring 2016, pp 103–131. 10.22034/JCLC.2022.340911.1688.[In Persian].
