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The Impact of Internal Auditing and its Reflection on Improving the Financial Performance of Banks in Dhi Qar Governorate (An Analytical Study in Rafidain Bank / Al-Nasr Branch)
American Journal of Economics and Business Management,
Vol. 7 No. 12 (2024): December
Abstract
This research aims to identify the impact of internal auditing and its reflection on improving the financial performance of banks in Dhi Qar Governorate/Iraq. An analytical study was conducted on a sample of the Iraqi Rafidain Bank/Al-Nasr Branch, as Rafidain Bank has seven branches in the above-mentioned governorate. Al-Nasr Branch was chosen from among those branches for several reasons, such as its proximity, the speed of obtaining information, and the ease of collecting data accurately for the purpose of testing the relationship between the effectiveness of the internal audit function and the financial performance of banks. The data was collected through a questionnaire directed to the bank’s manager and employees. Appropriate statistical methods were used to analyze the data and verify the research hypotheses. Data were collected from (40) respondents who are considered the research community using the intentional sample method, as the questionnaire was relied upon in collecting data, as it included ten indicators. The research relied on the program (SPSS V.24), (Excel 2011) in addition to relying on descriptive statistics methods (arithmetic mean, standard deviation). The research results showed a positive relationship with an impact between the effectiveness of the internal audit function and improving the financial performance of the banks studied, and the direct link between auditing Internal to improve financial performance.
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- Nahla, Mili and Ghaffar Jalisa, (2022), “The Impact of the Internal Control System on Financial Performance in Commercial Banks”, a field study at the Agricultural and Rural Development Bank, Guelma Agency, Master’s thesis submitted to the University of May 8, 1945, Faculty of Economics, Business and Management Sciences.
- Muhammad Ali Abdullah, “Internal Auditing: Foundations and Concepts,” published by Dar Al Fikr Al Jami’i, 2021.
- Salim Abdel Rahman (2023) “Risk Management and Internal Auditing” published in Dar Al-Ma’rifah Al-Jami’iyah, 2023.
- Al-Sharif, Hussein, Al-Sharifi, Abdul-Moneim, and Abdul-Hamid, Muhammad (2019). “The Role of Internal Audit in Improving Corporate Governance: A Field Study.” Tikrit University Journal of Administrative and Economic Sciences, Volume 11, Issue 36.
- Ahmed Zaki(2022): “The Importance of Internal Auditing in Banks,” Arab Journal of Banking and Financial Sciences, 2022.
- Al-Jaderji, Amer (2019). “Scientific Research Methodology in the Humanities and Social Sciences”. Mosul Studies Journal, University of Mosul.
- Samer Muhammad Hassan (2019) “Comparing the financial performance of conventional and Islamic banks using financial analysis tools” published master’s thesis, an applied study on private banks in Syria.
- Al-Abadi, Hashim (2017). “The Role of Internal Auditing in Enhancing Financial and Administrative Control in Institutions”. Journal of Baghdad College of Economic Sciences University, Issue 52.
- Adel Mohamed (2020) “The Role of Internal Audit in Improving the Financial Performance of Banks” Master’s Thesis, Al-Azhar University.
- Amina Ben Jeddou and Masoud Mihoub (2021) “Evaluating the Efficiency and Effectiveness of the Financial Performance of Commercial Banks Using Financial Ratios” Journal of Financial, Accounting and Administrative Studies Volume 8, Issue 2, June 2021.
- Aisha Hafiza, (2015) “The Role of Internal Audit in Improving the Financial Performance of Public Banks” A Field Study at the Local Development Bank (BDL) for the state of Ghardaia.
- Almasria, N. A. (2022). Factors affecting the quality of the audit process "Perceptions of external auditors". The International Journal of Accounting and Business Society, 30(1), 107-148.
- Hazaea, S.A., Tabash, M.I., Zhu, J., Khatib, S.F., & Farhan, N.H. (2021). Internal audit and financial performance of Yemeni commercial banks: Empirical evidence. Banks and Bank Systems, 16(2), 137-147.
- Chauke, Deroul ; (2021)"Ethical Sensetivity Of Internal Audit University Students", Submitted In Fulfillment Of The Requirements For The Degree Of Master Of Commerce (Accounting) To Be Awarded At The Nelson Mandela University.
- Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280.
- Carcello, J. V., Hermanson, D. R., & Raghunandan, K. (2005). Factors associated with US public companies' investment in internal auditing. Accounting Horizons, 19(2), 69-84.
- Gramling, A. A., Maletta, M. J., Schneider, A., & Church, B. K. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research. Journal of Accounting Literature, 23, 194-244.
References
Nahla, Mili and Ghaffar Jalisa, (2022), “The Impact of the Internal Control System on Financial Performance in Commercial Banks”, a field study at the Agricultural and Rural Development Bank, Guelma Agency, Master’s thesis submitted to the University of May 8, 1945, Faculty of Economics, Business and Management Sciences.
Muhammad Ali Abdullah, “Internal Auditing: Foundations and Concepts,” published by Dar Al Fikr Al Jami’i, 2021.
Salim Abdel Rahman (2023) “Risk Management and Internal Auditing” published in Dar Al-Ma’rifah Al-Jami’iyah, 2023.
Al-Sharif, Hussein, Al-Sharifi, Abdul-Moneim, and Abdul-Hamid, Muhammad (2019). “The Role of Internal Audit in Improving Corporate Governance: A Field Study.” Tikrit University Journal of Administrative and Economic Sciences, Volume 11, Issue 36.
Ahmed Zaki(2022): “The Importance of Internal Auditing in Banks,” Arab Journal of Banking and Financial Sciences, 2022.
Al-Jaderji, Amer (2019). “Scientific Research Methodology in the Humanities and Social Sciences”. Mosul Studies Journal, University of Mosul.
Samer Muhammad Hassan (2019) “Comparing the financial performance of conventional and Islamic banks using financial analysis tools” published master’s thesis, an applied study on private banks in Syria.
Al-Abadi, Hashim (2017). “The Role of Internal Auditing in Enhancing Financial and Administrative Control in Institutions”. Journal of Baghdad College of Economic Sciences University, Issue 52.
Adel Mohamed (2020) “The Role of Internal Audit in Improving the Financial Performance of Banks” Master’s Thesis, Al-Azhar University.
Amina Ben Jeddou and Masoud Mihoub (2021) “Evaluating the Efficiency and Effectiveness of the Financial Performance of Commercial Banks Using Financial Ratios” Journal of Financial, Accounting and Administrative Studies Volume 8, Issue 2, June 2021.
Aisha Hafiza, (2015) “The Role of Internal Audit in Improving the Financial Performance of Public Banks” A Field Study at the Local Development Bank (BDL) for the state of Ghardaia.
Almasria, N. A. (2022). Factors affecting the quality of the audit process "Perceptions of external auditors". The International Journal of Accounting and Business Society, 30(1), 107-148.
Hazaea, S.A., Tabash, M.I., Zhu, J., Khatib, S.F., & Farhan, N.H. (2021). Internal audit and financial performance of Yemeni commercial banks: Empirical evidence. Banks and Bank Systems, 16(2), 137-147.
Chauke, Deroul ; (2021)"Ethical Sensetivity Of Internal Audit University Students", Submitted In Fulfillment Of The Requirements For The Degree Of Master Of Commerce (Accounting) To Be Awarded At The Nelson Mandela University.
Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280.
Carcello, J. V., Hermanson, D. R., & Raghunandan, K. (2005). Factors associated with US public companies' investment in internal auditing. Accounting Horizons, 19(2), 69-84.
Gramling, A. A., Maletta, M. J., Schneider, A., & Church, B. K. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research. Journal of Accounting Literature, 23, 194-244.