Identifying and prioritizing the underlying factors for effective evaluation of internal controls in companies listed on the Tehran Stock Exchange with the Fuzzy Analytic Network Process (FANP) approach

Considering the importance of the issue of evaluation of internal controls, this study aims to identify and prioritize the underlying factors of effective evaluation of internal controls in companies listed on the Tehran Stock Exchange by exploratory mixed method (qualitative-quantitative) and using fuzzy Delphi techniques and Fuzzy Analytic Network Process (FANP) approach during the period of 2019. First, by reviewing reliable sources in the field of internal controls and content analysis approach, the initial variables of the research are identified. Then, using fuzzy Delphi technique and using the views of 19 knowledgeable experts in the field of internal controls, the indices affecting the effective evaluation of internal controls are identified and screened during Delphi rounds consisting of 8 main criteria and 68 evaluation indicators. Afterwards, the main criteria and evaluation indicators are prioritized using FANP approach. The results of prioritizing the factors indicate that among the main criteria, the characteristics of the internal auditor are the most important factor in effective evaluation of internal controls, with the structure of the board, the characteristics of the independent auditor and process factors ranked next. In addition, in prioritizing the indicators, the sub-criteria of scientific, professional and expert competencies of the employees of the internal audit unit and the independence of the internal audit unit are of the highest degree of importance in effective evaluation of internal controls.