Accounting and Auditing Research

Accounting and Auditing Research

Investigating the Effect of Internal Control Structure on Organizational Ethical Behaviours with the Mediating Role of Internal Control Effectiveness and the Moderating Role of Organizational Mindfulness

Document Type : Original Article

Authors
Ali Ebrahimi Kordlar
Zahra Ramezani
Ph.D. Student in Accounting, Faculty of Accounting and Auditing, University of Tehran, Iran
10.22034/iaar.2025.241598
Abstract
Ethical behaviors in organizations can be a sign of organizational advancement, which is the result of appropriate monitoring over time and creating a positive mindset among employees. The purpose of the present study is to investigate the effect of internal control structure on organizational ethical behaviors with the mediating role of internal control effectiveness and the moderating role of organizational mindfulness. For this purpose, the descriptive-survey method and standard questionnaire tool were used in this study. The statistical sample of the study included 154 middle and senior managers of private sector companies with at least two years of work experience, who were selected by simple random sampling method. Also, through structural equation modeling, the research hypotheses were tested. The evidence of the tests showed that internal control structures have a positive effect on the effectiveness of internal control. Also, the effectiveness of internal control has a positive effect on organizational ethical behavior. The findings indicate that the effectiveness of internal control mediates the effect of internal control structure on ethical organizational behaviors. In addition, the results provide evidence that organizational mindfulness positively moderates the effect of internal control structures on internal control effectiveness. Therefore, the results of the study illustrate the agency theory based on the positive effects of internal controls in reducing agency costs and driving them towards ethical behaviors.
Keywords
Organizational Ethical Behaviors, Internal Control Structure, Internal Control Effectiveness, Organizational Mindfulness
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