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A Legal Analysis of the Impact of Continuous Supervision (Article 1 of the Supreme Audit Court Act) on the Financial Behavior of Executive Managers in Hamadan Province: Emphasizing the Boundary between Prudence and Omission of Duty
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Ali Jamshidi Vashuri *   , Amir Ali Bahrami |
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Abstract: (39 Views) |
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Continuous financial supervision under Article 1 of the Supreme Audit Court of Iran Act is designed as a fundamental mechanism to safeguard the public treasury through ongoing control of financial operations, auditing of expenditures and revenues, and preparation of the budget discharge report. However, the expansion and intensification of such oversight may generate unintended dual effects on the financial behavior of executive managers. This study aims to provide a legal analysis of how the perception of continuous supervision influences conservative behavior and omission of duty among financial managers in Hamadan Province. Employing a descriptive-survey and correlational design, the research utilized a researcher-made 5-point Likert scale questionnaire whose content validity was confirmed by Supreme Audit Court experts and whose reliability was established through Cronbach's alpha coefficient (0.84), subsequently distributed among a purposive sample of 40 comptrollers and senior financial managers in the province. The central legal question was whether continuous supervision fosters constructive prudence through compliance with Article 23(b) or induces managerial inertia, defined as omission of duty stemming from fear of prosecution under Article 23(e). Findings revealed a statistically significant positive relationship between the perception of continuous supervision and managers' tendency to engage in omission of duty (P < 0.05). The study concludes that in order to genuinely safeguard the public treasury, the Supreme Audit Court must draw a clearer legal boundary between violation and legitimate managerial risk-taking while simultaneously strengthening ex-ante preventive supervision mechanisms, thereby recalibrating the behavioral impact of its oversight on public managers.
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| Keywords: Continuous Supervision, Supreme Audit Court of Iran, Financial Behavior of Managers, Omission of Duty, Hamadan Province. |
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Full-Text [PDF 628 kb]
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Type of Study: Applicable |
Subject:
Special
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