Designing and Validating a Risk-Based Audit Model for Cryptocurrencies in Iran

Abstract

This study aimed to design and validate an integrated risk-based audit model for cryptocurrencies in Iran, focusing on causal conditions, the central phenomenon, contextual conditions, intervening conditions, strategies, and professional consequences. This applied-developmental and descriptive-correlational study followed an earlier qualitative grounded-theory phase. The statistical population consisted of internal and independent auditors, risk managers, and professionals with expertise in cryptocurrencies and blockchain in Iran. Using multistage cluster sampling, 411 valid questionnaires were collected. Data were gathered through a researcher-developed 30-item questionnaire rated on a five-point Likert scale and designed to assess six main constructs. Data analysis was performed using partial least squares structural equation modeling with SmartPLS 3. Structural model results showed that causal conditions had a strong positive effect on the central phenomenon (β=0.712). Contextual conditions (β=0.561), intervening conditions (β=0.618), and the central phenomenon (β=0.524) positively affected strategies, while strategies significantly predicted consequences (β=0.673). The coefficients of determination for the central phenomenon, strategies, and consequences were 0.718, 0.736, and 0.685, respectively. Q² values were 0.589, 0.612, and 0.567, indicating satisfactory predictive relevance. The SRMR value was 0.064, supporting acceptable model fit. Indirect effects further confirmed the mediating roles of the central phenomenon and strategies in transmitting the effects of causal and contextual factors to outcomes. The validated model indicates that effective risk-based cryptocurrency auditing in Iran depends on the coordinated interaction of environmental drivers, technological capacities, professional constraints, and practical audit strategies. Implementation of the model can contribute to lower audit risk, improved audit quality, greater stakeholder confidence, and stronger positioning of the auditing profession in the digital economy.