Presenting a Model for Measuring the Quality of Internal Control Structures for Tehran Stock Exchange Companies

Abstract

The present study aims to propose a model for assessing the quality of the internal control structure of companies listed on the Tehran Stock Exchange. To achieve this goal, a set of indicators and components of the internal control structure were identified through a review of the theoretical foundations and research background, as well as interviews with experts and specialists in the relevant field. Then, using the fuzzy Delphi process and model validation with the binomial test, quality measurement indicators for the internal control structure were identified. The sample consisted of 36 managers and university professors specializing in internal controls. According to the study, the quality of the internal control structure was classified into three environmental, structural-executive, and results dimensions. The environmental dimension includes three components: the cultural, social, and economic environment of the company's activity location, the legal, political, and economic structure governing the company, and the general structure of the company, with twenty indicators. The structural-executive dimension includes four components: the board of directors structure, specialized committees of the board of directors, senior management structure, and internal supervisory structure, with fifty-eight indicators. The results dimension includes five components: internal control assessment report, independent auditor report, compliance with laws and regulations by the company, company's tax and insurance structure, and transparency and quality of reporting - fairness and justice in the company, with thirty-three indicators

Keywords

• quality of internal control structures
• environmental dimension
• structural-executive dimension
• outcome dimension
• fuzzy delphi