Role of Internal Control in Improving Auditing System (the case of the Iranian Ground Force Units)

Design and establishment of internal control system in finance services is one of the most effective mechanisms in enhancing the efficiency and effectiveness of operations, improving accountability and financial transparency, observing rules and regulators and avoiding financial fraud. In line with this approach, this study investigated the role of internal control in improving auditing process in the military units affiliated to the Iranian Army (i.e., Ground Force). The study also investigated the issues such as protective control, accuracy control, human characteristics, documentation of familiarity with the internal control system, internal control risk all as independent variables and improvement of auditing system as a dependent variable. The participants were selected from among those officials who were engaged in financed affairs (e.g., controller, finance and monetary affairs). To this end, 131 were randomly selected out of a population of 200 officials. Five hypotheses were raised which were tested through data gathered using a questionnaire. To analyze the data, t-tests were run and reliability of the instrument was estimated based Cronbach alpha formula (r=%95). The findings revealed positive relationship among the independent and dependent variables such that the null hypotheses were rejected.