Relationship between the attributes of the internal audit activity and the adoption and implementation of international financial reporting standards

Internal auditing is considered as an important part of international financial reporting policies and strategies that can lead to value creation for stakeholders. One of these important areas is the adoption and implementation of International Financial Reporting Standards, which have focused on internal audit functions over the past few years. Therefore, the aim of this paper is to examine the features of internal audit and its impact on the adoption and implementation of International Financial Reporting Standards.

H1: The internal audit has an impact on the adoption and implementation of IFRS H2: The relationship between internal and independent auditors affects on the adoption and implementation of IFRS H3: The independence of the internal audit affects on the adoption and implementation of IFRS H4: The professional competence of internal auditors affects on the adoption and implementation of IFRS H5: Management support for the internal audit unit has an impact on the adoption and implementation of IFRS.

This research is classified as applied research in terms of research purpose and as descriptive / survey research in terms of the nature of analysis. Also, in terms of time, its data are cross-sectional in 2021. A standard questionnaire was applied for collecting the data, which is the basis for structural equation analysis and partial least squares analysis to fit the desirability of the research model. The statistical population of the study consists of auditor’s members of National Association for Official Auditors.

The findings indicate the internal audit and management support from it have a significant effect on the adoption and implementation of IFRS, while the relationship between internal and independent auditors, the independence of the internal audit and the professional competence of internal auditors have not a significant effect on the adoption and implementation of IFRS.

Results demonstrate that the internal audit unit can play an effective role in the acceptance and implementation of IFRS and managers' attention are urged to consider the importance of that role and to support it.