Factors Influencing the Professional Behavior of Internal Auditors from the Perspective of Independent Auditors

Abstract

This study aimed to examine the effects of individual, organizational, and environmental factors on internal auditors’ professional behavior and to determine the relationship between independent auditors’ evaluations of these factors and their reliance on the internal audit function. This applied study employed a descriptive-survey design. The statistical population comprised independent auditors who were members of the Iranian Association of Certified Public Accountants. Using convenience sampling, 117 completed and usable questionnaires were obtained from independent auditors. Data were collected through a structured scenario-based questionnaire. Content validity was confirmed by five auditing academics and experts, while instrument reliability was supported by a Cronbach’s alpha coefficient of 0.91. Multiple linear regression was used to examine the effects of individual, organizational, and environmental factors on internal auditors’ professional behavior. Spearman’s rank correlation coefficient was employed to assess the relationship between independent auditors’ evaluations of these factors and their reliance on the performance of the internal audit function. Multiple regression analysis indicated that individual factors (B=0.396, β=0.632, t=9.521, p<0.001), organizational factors (B=0.220, β=0.195, t=2.915, p=0.004), and environmental factors (B=0.330, β=0.269, t=4.028, p<0.001) had significant positive effects on internal auditors’ professional behavior. The regression model explained 50.2% of the variance in professional behavior (R²=0.502, F=37.937, p<0.001; f²=1.008), with individual factors emerging as the strongest predictor. Furthermore, a strong, positive, and statistically significant relationship was found between independent auditors’ evaluations of the factors influencing internal auditors’ professional behavior and their reliance on the internal audit function (r_s=0.918, p<0.001). Internal auditors’ professional behavior is jointly shaped by individual, organizational, and environmental factors, with individual attributes and professional competencies exerting the greatest influence. More favorable evaluations of these factors are also strongly associated with greater independent auditor reliance on the internal audit function. Accordingly, strengthening internal auditors’ professional competence and ethical conduct, while improving organizational support, professional independence, and regulatory frameworks, may enhance external auditors’ confidence and promote more effective coordination between internal and independent auditing.