Designing and Explaining the Implementation Model of Operational Audit in Iranian State-Owned Companies
Keywords:
Operational Audit, Performance Evaluation, State-Owned Companies, Organizational Governance, Accountability, Structural ModelingAbstract
The present study aimed to design and explain an implementation model for operational auditing in Iranian state-owned companies by considering environmental characteristics, legal requirements, organizational conditions, and strategic needs of the public sector. This study employed an exploratory mixed-methods design with a developmental-applied orientation. In the qualitative phase, the Multi-Grounded Theory approach was utilized through in-depth semi-structured interviews with 14 academic experts and experienced auditing professionals in the public sector, selected using purposive and snowball sampling techniques. Qualitative data were analyzed through open, axial, and selective coding procedures. In the quantitative phase, the extracted model was evaluated using a researcher-developed questionnaire administered to 395 managers, financial specialists, and auditors of state-owned companies. Structural Equation Modeling based on Partial Least Squares (PLS-SEM) was applied to validate the proposed framework. The qualitative findings resulted in six major dimensions, including causal conditions, contextual conditions, intervening conditions, the axial phenomenon, strategies, and consequences, comprising 16 subcategories. The core phenomenon was identified as the “Establishment of an Integrated Operational Audit System and Institutionalization of Continuous Performance Evaluation.” Structural model analysis demonstrated that causal conditions (β = 0.461), contextual conditions (β = 0.605), and intervening conditions (β = 0.424) exerted significant direct effects on the axial phenomenon. Furthermore, the axial phenomenon (β = 0.793) and intervening conditions (β = 0.347) significantly influenced strategic actions, while strategies had a substantial impact on the model consequences (β = 0.665). The overall model fit index (GOF = 0.711) confirmed an excellent model fit. The findings indicate that successful implementation of operational auditing in Iranian state-owned companies requires the integrated management of governance requirements, organizational contexts, resource limitations, and professional implementation strategies. The proposed model provides a localized and evidence-based framework for strengthening governance, accountability, managerial decision-making, organizational learning, and efficient utilization of public resources within the public sector.
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Copyright (c) 2025 َAli Yektay Moghadam, Mohammad Mahmoudi, Donya Ahadian Pour Parvin, Seyedeh Atefeh Hosseini (Author)
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