Investigating the Moderating Role of Managers’ Narcissism in Explaining the Relationship between the Auditor’s Features and the Internal Control Effectiveness

The objective of this study is to investigate the moderating role of managers’ narcissism in explaining the relationship between the competence of the internal auditor and the possibility of the disclosure of internal control weakness. For this purpose, the data of 144 companies during the years 1391 to 1398 have been used. Also, the current research is applicable in terms of purpose, descriptive- analytical in terms of inference method and in terms of the overall research plan is events/retrospective. The professional competence, experience and the level of education of the internal auditor are the features of the internal auditor’s competence that have been studied in this research. According to this and after ensuring the acceptable fit of the measurement and structural patterns of the research, the results of the hypothesis test using Data panel regression method with random effects indicates that managers’ narcissism negatively moderates the relationship between auditors’ features and the internal control effectiveness, in other words, the more narcissistic managers are, the less positive the impact of auditors' professional competence, experience and level of education on the effectiveness of internal control.