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Mennati, V., Ganji, H., fakhri, S. (2024). The influence of bank’s knowledge about of the borrowing company internal audit Function on lending decisions. Electronic and Cyber Defense, 1(3), 11-41.
Vahid Mennati; Hamidreza Ganji; sepideh fakhri. "The influence of bank’s knowledge about of the borrowing company internal audit Function on lending decisions". Electronic and Cyber Defense, 1, 3, 2024, 11-41.
Mennati, V., Ganji, H., fakhri, S. (2024). 'The influence of bank’s knowledge about of the borrowing company internal audit Function on lending decisions', Electronic and Cyber Defense, 1(3), pp. 11-41.
Mennati, V., Ganji, H., fakhri, S. The influence of bank’s knowledge about of the borrowing company internal audit Function on lending decisions. Electronic and Cyber Defense, 2024; 1(3): 11-41.

The influence of bank’s knowledge about of the borrowing company internal audit Function on lending decisions

مطالعات حسابرسی مطهر
Volume 1, Issue 3, November 2024, Pages 11-41    PDF (1009.42 K)
Document Type: Original Article
Authors
Vahid Mennati* 1; Hamidreza Ganji2; sepideh fakhri3
1Assistant professor of , Management and Accounting ,Shahid Beheshti University, Tehran, Iran.
2Assistant Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran
3Senior Expert, Department of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.
Receive Date: 08 December 2023,  Revise Date: 11 January 2024,  Accept Date: 14 March 2024 
Abstract
Theoretically, it is expected that the existence of a powerful Internal Audit Function(IAF) will strengthen internal controls and, as a result, increase the reliability of financial reporting. Hence, it is expected that banks and credit institutions will be encouraged to lend when the company has a powerful IAF. For this reason, lending decisions can be influenced by the existence and strength (quality) of the borrower's IAF. In this regard, the purpose of this study is to investigate the influence of bank’s knowledge about of the borrowing company IAF on lending decisions. For this purpose, all branches of banks listed in Tehran stock Exchange & Iran Fara Bourse in Tehran were studied in 2023. A questionnaire was used to collect research data. After distributing the questionnaire, finally 145 responses were collected. The Mann-Whitney test (U test) was used to analyze the data. The findings of the research showed that the presence of the IAF has a positive and significant influence on lending decisions. A more detailed analysis showed that the age of the IAF, having an approved internal audit plan, reporting to the audit committee and the board of directors versus to the executive, the use of audit software, training courses held for internal audit staff, auditors' professional certificates, the average experience the IAF’s auditors has a positive and significant influence on lending decisions. The findings did not show a significant relationship between the number of reports issued by the IAF and the number of IAF’s auditors and lending decisions.
Keywords
Internal Audit; Lending Decisions; Internal Audit Quality
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