59
International Journal of Management and Economics Fundamental
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue03 2025
PAGE NO.
59-69
DOI
10.37547/ijmef/Volume05Issue03-10
Reflection of Internal Control Evaluation on the Quality
of Internal Auditing
Israa Mohanad Abdulmelek Al-Hamadani
M.Sc. Al-Nahrain University Presidency, Al-Nahrain University, Baghdad, Iraq
Prof. Dr. Saddam Gatea Hashim Al-Saadi
College of Business Economics, Al-Nahrain University, Baghdad, Iraq
Received:
16 January 2025;
Accepted:
22 February 2025;
Published:
20 March 2025
Abstract:
The internal auditing function is considered one of the most important functions in organizations, as the
internal audit department is directly linked to senior management. It audits all financial and non-financial matters
and evaluates how departments adhere to internal control policies and procedures. This is achieved by using
internal control evaluation tools. The internal auditor provides an impartial, fair technical opinion in the reports
submitted to senior management to achieve the set goals. In return, a program is developed to improve quality,
monitor the internal auditors' adherence to professional ethics, assess the efficiency and effectiveness of internal
audit activities, and identify available opportunities for improvement. The research problem lies in identifying the
role of internal auditing in evaluating internal control in general and at Al-Nahrain University in particular. It also
aims to investigate whether a program for quality improvement contributes to enhancing the effectiveness and
efficiency of internal audit activities. The research aims to determine the necessity of the internal audit function in
institutions and the ability of the organization to achieve its objectives through evaluating internal control, as well
as the importance of having a quality improvement program. One of the most important conclusions and
recommendations reached is that the number of staff does not match the volume of work, as the number of
students admitted to our university exceeds the planned capacity. Additionally, the lack of a substitute performing
the duties of the authorized person in their absence leads to the authorized person taking the laptop outside the
university without obtaining the proper approvals to perform the work. It is essential to provide sufficient staff
working in the departments (colleges) to avoid mistakes and complete tasks on time. Furthermore, a substitute
should perform the tasks in the absence of the authorized person to prevent taking the laptop outside the
institution.
Keywords:
Evaluation, Internal Control, Internal Audit, Quality, Internal Auditor.
Introduction:
Internal control is one of the most
important pillars that enable organizations to carry out
their activities in the best possible manner, as it
includes internal control departments (internal
auditing, accounting control, administrative control,
and internal auditing). It is considered one of the active
arms of senior management in protecting its assets
from theft and loss, ensuring data accuracy and
reliability, adherence to the established administrative
policies, and improving productivity efficiency. The
internal auditor uses evaluation methods to identify
weaknesses and flaws and raises fair and neutral
opinions through reports to senior management in
order to achieve objectives. The problem of the
research lies in clarifying the role of internal auditing in
evaluating internal control in general and at Al-Nahrain
University in particular, and whether a quality
improvement program contributes to enhancing the
effectiveness and efficiency of internal auditing
activities.
Research Problem
The research problem lies in clarifying the role of
internal auditing in evaluating internal control in
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general, and specifically at Al-Nahrain University. Does
a quality improvement program contribute to
enhancing the effectiveness and efficiency of internal
auditing activities?
Research Importance
The importance of the research stems from the fact
that the internal auditing function has become one of
the most important roles and pillars in organizations, as
it is a control tool that activates all the controls
governing the institution's work. As an independent
department directly linked to the senior management
of the institution, it provides a neutral technical opinion
about the observations made during its work in order
to improve the institution's performance and achieve
the desired goals. Furthermore, it helps the
organization realize these goals into actual results
through evaluating internal control.
Research Objective
1.
To determine the necessity of the internal auditing
function in organizations.
2.
To assess the ability of organizations to achieve their
goals through the evaluation of internal control.
3.
To identify the need for a quality improvement
program.
Research Hypotheses
Considering the research problem, the following
hypotheses can be formulated:
1.
The presence of the internal auditing function in
organizations impacts the detection of errors and
fraud.
2.
The evaluation of internal control in organizations
affects the extent to which planned objectives are
achieved.
3.
A quality improvement program within organizations
impacts the extent to which internal auditors adhere to
professional ethics, evaluates the efficiency and
effectiveness of internal auditing activities, and
identifies opportunities for improvement
Research Methodology
The researcher relied on the following tools:
1.
The deductive method in the theoretical aspect.
2.
The inductive method in the practical aspect, as it was
applied at Al-Nahrain University.
Sixth: Research Scope
The scope of the research is as follows:
1.
Spatial scope: Due to the importance of educational
institutions and their significant role in society, as they
provide the community with advanced scientific
competencies, Al-Nahrain University was chosen as the
field of application for the practical aspect of this
research.
2.
Temporal scope: The period from 2020 to 2021,
which witnessed changes in the university's
organizational environment
Method and Tools for Data Collection
Theoretical Aspect
1.
Laws, regulations, and official documents.
2.
Arabic and foreign books.
3.
Theses, dissertations, and scientific research papers.
Practical Aspect
1.
Direct interviews with specialists from the
departments and sections involved in the research
sample.
2.
Observations and inquiries made by the researcher
The Conceptual Framework for Internal Control and
Internal Audit
First: The Concept of Internal Control
The scientific advancement that occurred in modern
times, across all fields of life, led to the expansion of
institutional activities and an increase in the
responsibilities placed upon them to achieve goals and
avoid administrative issues arising from the diversity of
their activities and the growing scale of their
operations. To address the risks that may threaten
them, there was a need to provide adequate internal
control. Internal control is considered one of the most
important procedures and policies that an institution
can adopt to face risks and mitigate them. Having an
internal control system that is efficient and effective
serves as protection against the risks that institutions
may encounter. (Halehil & Kareem, 17:2019)
Internal control is defined as "the types of policies and
procedures adopted by senior management to achieve
the organization's objectives and ensure their
implementation,
including
compliance
with
administrative policies and procedures, safeguarding
assets (resources), detecting errors, and ensuring the
completeness of financial records and data promptly."
(Accounting and Auditing Standards Board, 1:2000)
It is also defined by the Committee of Sponsoring
Organizations (COSO) as "a set of processes that may
be carried out by the board of senior management or
the senior management and all employees, designed to
achieve the desired objectives that ensure the
reliability of financial statements, compliance with laws
and regulations, and the efficiency and effectiveness of
operations." (Bungartz & Srobel, 2:2012).
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The researcher believes that by implementing the
internal control policies and procedures by senior
management and ensuring the commitment of the
employees to them, the desired objectives will be
achieved
Second: The Components of Internal Control
The Local Audit Guide No. (4) clarified the types of
policies
and
procedures
adopted
by
senior
management that work to achieve the institutions'
objectives and ensure their implementation. These
include compliance with administrative policies and
procedures, safeguarding assets, detecting errors,
ensuring the accuracy of accounting entries, and
maintaining the completeness and timeliness of
financial records and data. (Accounting and Auditing
Standards Board, 5:2000)
Accordingly, internal control is divided into:
Figure (1): Internal Control Departments
The researcher believes that the internal control
departments
complement
each
other
within
institutions. In cases of manipulation, theft, or
deviation from established policies and procedures, the
consequences will be reflected in the financial position
of the institutions.
Third: Elements of Internal Control
Internal control is an organizational plan consisting of a
set of procedures and policies adopted by the
institution’s management. It comprises essential
elements that must be available and implemented to
achieve the intended objectives. These elements
include:
(Accounting and Auditing Standards Board, 2000: 2-4)
1.
Separation of Responsibilities
The institution’s management must separate the
responsibilities of its employees to reduce the
likelihood of fraud or unintentional errors in financial
and administrative data. Proper segregation of duties
makes collusion among employees more difficult.
Effective separation of responsibilities relies on dividing
key functions, such as asset custody, record-keeping,
and authorization. For example, the cashier is
responsible for holding cash, while the accounting
manager and their team handle record-keeping.
Meanwhile,
the
administrative
and
financial
department manager is responsible for granting
approvals.
2.
Clarity of Authority and Responsibility
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Various employees perform different functions within
an institution. To ensure effective internal control, each
employee must be held accountable for their assigned
role. This is achieved by defining clear responsibilities
and ensuring accountability. A job description manual
should be developed, made available, and clearly
communicated to all employees.
3.
Organizational and Administrative Plan
Internal control relies on a well-defined organizational
and administrative plan that outlines the framework
for directing and regulating institutional activities. A
clear organizational structure should establish
delegation policies, define responsibilities, and
implement procedures that prevent any employee
from bypassing internal controls by ensuring a distinct
separation of duties.
4.
Accounting System
Internal control is supported by an integrated
accounting system, consisting of documents, records,
and a well-structured chart of accounts based on
generally accepted accounting principles (GAAP). These
documents and records serve as the foundation for
documenting institutional transactions, providing
essential information for decision-making by senior
management
and
stakeholders.
Accurate
documentation is crucial, as an institution cannot
effectively provide information without properly
recording its transactions. Documents are the starting
point of the institution’s accounti
ng system.
5.
Protection of Assets and Records
Institutions must establish necessary procedures to
protect all assets and records from damage, loss, or
misuse. This includes issuing written instructions on
operational procedures and protection measures, and
ensuring employees comply with regulations. Examples
include cash handling and bank deposits, warehouse
organization to prevent theft or tampering, and
safeguarding fixed assets.
Regarding record security, institutions must store
documents in secure locations, restricting access to
unauthorized employees. Additionally, backup copies
of records should be maintained to prevent data loss.
6.
Evaluation and Updating of Internal Control
Senior management conducts continuous and periodic
assessments of internal control performance to
measure its effectiveness against the intended design.
This process helps identify potential areas for
modification and improvement in alignment with
environmental and organizational changes.
7.
Monitoring Compliance with Internal Control
The effectiveness of the previously mentioned internal
control elements depends on the commitment of
employees to implementing laws, regulations, policies,
and administrative procedures. Compliance and
performance should be regularly evaluated to enforce
accountability
accounting.
Senior
management
typically monitors employee compliance through
internal control units, which conduct audits,
evaluations, and reporting on findings to senior
management.
8.
Competence and Integrity of Employees
The success of internal control relies on the
competence and integrity of employees within the
institution.
Even
with
well-defined
authority,
responsibility, and control mechanisms, internal
control fails if employees lack the necessary skills or
ethical standards to fulfill their responsibilities.
Institutions should implement a sound hiring and
promotion policy, considering job descriptions and
required qualifications to ensure employees are well-
suited for their roles.
4.
Methods for Evaluating Internal Control
Internal auditors use several methods to assess the
effectiveness of internal control systems within
institutions. The most important methods include:
1.
Questionnaire
A questionnaire consists of a set of written questions
covering internal control procedures that the internal
auditor intends to rely on. This questionnaire is
distributed to employees responsible for designing and
implementing internal controls within the institution.
Employees respond with either:
•
"Yes"
–
Indicating a strong internal control
procedure.
•
"No"
–
Indicating a weakness in the internal
control system.
Once completed, the questionnaire is returned to the
internal auditor, who analyzes the responses and
conducts tests to verify their accuracy and reliability.
The success of this method depends on how well the
questions are formulated and their comprehensiveness
in covering all critical information necessary for an
accurate evaluation. (Al-Dhunaibat, 2010:186)
2.
Descriptive Report
The internal auditor interviews employees about each
task and process within the institution. Through this
process, the auditor gains insights into how operations
are carried out. The responses are documented and
organized to illustrate the flow of processes from start
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to finish. (Halihal & Kareem, 2019:127)
3.
Reminder Summary
A reminder summary is a general statement outlining
the methods and requirements necessary to establish
an ideal internal control system within institutions.
(Accounting and Auditing Standards Board, 2000:6)
4.
Organizational Charts
Organizational charts serve as the foundation for
internal control processes. While the structure of these
charts may vary between institutions, they should
always be:
•
Flexible
•
Simple and clear
•
Defining authority and responsibilities across
departments
Properly structured organizational charts improve
internal control efficiency. (Halihal & Kareem,
2019:128)
5.
Examination of the Accounting System
Internal auditors analyze the institution's accounting
system by:
•
Reviewing a list of accounting records and
identifying responsible personnel.
•
Examining supporting documents and the
document flow cycle (i.e., how transactions are
recorded, approved, and verified).
This process helps assess the strength of internal
control measures, focusing on the specific conditions
and risks unique to each institution. (Al-Wardat,
2013:416)
Researcher’s
Perspective
The researcher believes that internal auditors should
have the capability to apply one or more of these
methods to assess internal control effectively.
Additionally, they must be able to analyze results and
provide an objective professional opinion on the
effectiveness of the implemented internal control
system.
Concept of Internal Auditing
Internal auditing is an independent evaluation function
within an institution, serving as a key component of
effective internal control. It is established by senior
management to ensure that control measures are
being applied through a set of policies and procedures
designed to achieve processes and controls
continuously. This guarantees the accuracy of financial
data, ensures the protection of the institution's assets
and funds, and verifies that employees are following
the institution's established administrative policies and
procedures. (Accounting and Auditing Standards Board,
2000:8)
Internal auditing can be defined as a consulting,
objective, and independent activity aimed at adding
value and improving operations within institutions. It
helps achieve objectives by utilizing a systematic
approach to evaluate the effectiveness of senior
management in addressing risks, implementing
controls, and ensuring governance. (Supreme Audit
Board, 2019:25)
Researcher's Perspective
From the above, the researcher believes that the core
role of internal auditing is to ensure the effectiveness
of internal control within institutions.
Objectives of Internal Auditing
The objectives of internal auditing are primarily aimed
at achieving accounting and administrative controls
and ensuring internal control systems are functioning,
which is the main goal of internal auditing. (Accounting
and Auditing Standards Board, 2000:8)
1.
Reviewing the accounting system and internal
controls.
2.
Testing operational information for accuracy and
reliability.
3.
Examining the economic feasibility of processes,
ensuring their efficiency and effectiveness.
4.
Assessing compliance with laws, regulations,
instructions, and policies established by the
institution's senior management.
Types of Internal Auditing
There are several types of internal auditing, the most
important of which include: (Accounting and Auditing
Standards Board, 2000:10)
1.
Financial Auditing:
This refers to the analysis of the
institution's economic activity, evaluating accounting
systems, financial information, and reports to
determine their reliability and accuracy.
2.
Compliance Auditing:
This involves auditing financial
and operational controls to assess the quality and
adequacy of systems put in place to ensure compliance
with regulations, procedures, and policies set by senior
management.
3.
Operational Auditing:
This is a comprehensive audit
of the various functions within the institution to assess
the efficiency, effectiveness, and relevance of these
functions in achieving the institution's objectives.
Skills and Behaviors Required for Internal Auditors
Individuals working in internal auditing units within
institutions should possess a set of skills, experience,
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and knowledge, including: (Accounting and Auditing
Standards Board, 2000:8)
1.
Experience, Knowledge, and Skills to Complete Tasks:
•
Proficiency in applying internal auditing
standards and audit procedures.
•
Knowledge of accounting principles and the
technology required to carry out auditing tasks.
•
Understanding of management principles
necessary to recognize and assess deviations.
•
Knowledge of laws, regulations, instructions,
and administrative decisions related to the
institution's activities.
2.
The internal auditor must possess interpersonal skills
and tact to interact and communicate effectively with
others.
3.
Continuous training aimed at enhancing their skills
and knowledge in the field of specialization.
4.
Exercising caution when performing their duties.
Concept of Quality
The concept of quality is as old as the industry itself, but
the attention to quality in manufacturing in the modern
era and competition in this field began after World War
II, particularly in Japan. The impact of World War II
weakened the Japanese economy, making Japanese
products unable to compete or market outside Japan
due to poor product specifications and lack of customer
satisfaction. However, this weakness turned into a
strength and a launch toward globalization by seriously
thinking about improving the quality of Japanese
industrial products and adopting quality as a main tool
for improvement and raising the overall Japanese
economy. (Al-Mabrouk, 2017: 66)
Quality is defined as (a set of attributes and
characteristics of a product or service provided
according to specifications that satisfy customer
expectations at the time of purchase). (Hamdan et al.,
2017: 66)
Internal Audit Quality Standards
The internal audit quality standards consist of the
following: (International Standards for the Professional
Practice of Internal Auditing: 7-8)
A quality improvement program is designed to assess
the extent to which internal audit activities align with
standards and evaluate the extent to which internal
auditors adhere to professional ethics. It also includes
assessing the efficiency and effectiveness of internal
audit activities and identifying opportunities for
improvement. The internal audit manager should
encourage oversight within the senior management
board to improve quality. The quality improvement
program should include both internal and external
evaluations, which are:
Internal Evaluations
These include continuous monitoring, which involves
daily oversight and review of internal audit activities. It
is integrated into the policies and routine practices
used in managing the internal audit process. The
processes and information used are essential to assess
adherence to professional ethics principles and
standards. Continuous auditing requires knowledge of
internal auditing practices, including a comprehensive
understanding of all elements of the International
Professional Practices Framework (IPPF) for internal
auditing.
External Evaluations
These can be conducted through a comprehensive
external assessment or a self-assessment process with
independent external confirmation. The external
evaluator must reach a conclusion about adherence to
professional ethics and standards. The evaluator or
evaluation team must demonstrate their competency
and expertise in the professional practice of internal
auditing and external evaluation processes. This can be
proven through practical experience and theoretical
knowledge. In the case of a team evaluation, not all
individuals need to possess these competencies. The
internal audit manager uses professional judgment to
determine whether the evaluator or evaluation team
has the necessary qualifications to conduct the
evaluation. Regarding the independence of the
evaluator or evaluation team, there must be no conflict
of interest, either real or apparent. The evaluator or
team must not be part of or under the influence of the
organization to which the internal audit activity
belongs.
As for the reports related to the Quality Assurance and
Improvement Program, the Executive Director of the
Internal Audit Department must inform senior
management and the board of directors about the
results of the program. The disclosures should include
the following:
1.
The scope of internal and external evaluations.
2.
The qualifications and independence of the evaluator
or evaluation team, including potential conflicts of
interest.
3.
The conclusions of the evaluators.
4.
The corrective action plans.
Study of the Reality of the Graduate Studies
Department at Al-Nahrain University
This department is linked, according to the
organizational structure, to the Assistant President of
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the University for Scientific Affairs. The department
manages graduate studies affairs at the university and
issues university orders granting certificates (higher
diploma, master's, and doctorate). The department
consists of three divisions: (the Admissions Division, the
University Orders Division, Student Affairs Division).
The total number of individuals working in this
department is (14) staff members, as shown in Table (1)
as follows:
Table (1) The number of staff working in the Graduate Studies Department
Details
Number
Department Director
1
Admissions Division
3
University Orders Division
6
Student Affairs Division
3
Department Secretariat
1
Total
14
Source: Prepared by the researcher based on the data from Al-Nahrain University
From the table above, it is evident that the number of
actual employees is not proportionate to the volume of
work, as the number of accepted students in our
university exceeds the planned capacity. The planned
staff number was (20), and therefore, the researcher
recommends that the department be supplemented
with staff in the fields of computer science and
statistics to ensure the work is done properly.
As for the academic qualifications of the department
staff, they are as follows:
Table (2) Academic Qualifications
Academic Qualification Number Percentage
PhD
1
7.14%
Master's
2
14.29%
Bachelor's
9
64.29%
High School
1
7.14%
Primary School
1
7.14%
Total
14
100%
Source: Prepared by the researcher based on the data from Al-Nahrain University
It can be observed from the table above that the
majority of the department's staff hold a bachelor’s
degree (64%), followed by those with a Master's degree
(14%). The percentages of those holding a PhD, High
School, and Primary School certificates are equal, each
at 7%. These percentages are considered acceptable
and appropriate for the nature and size of the work.
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As for the years of service held by the department's
staff, they are outlined in the table below as follows:
Table (3) Years of Service.
Years of Service
Number Percentage
Less than 5 years
3
21.43%
5-10 years
1
7.14%
10-15 years
6
42.86%
15-20 years
1
7.14%
More than 20 years
3
21.43%
Total
14
100%
Source: Prepared by the researcher based on data from Al-Nahrain University.
From the table above, it is evident that the number of
staff members performing the tasks of the
departments is (14) employees. The highest percentage
of employees with service years ranging from (10-15)
years is (43%). The percentage of those with less than
five years of service and more than 20 years of service
is (21%) each. Meanwhile, the percentage of
employees with service years ranging from (5-10) years
and (15-20) years is (7%) each. The table above shows
that there is variation in the percentages, and they are
considered acceptable.
The nature of the department's tasks is determined by
the actual need to complete the work related to
postgraduate students. There has been an increase in
the number of accepted students each year, which
places a burden on the staff, as the department’s
resources
—
both material and human
—
do not align
with the capacity and acceptance plan provided by the
ministry for absorbing the students and meeting their
needs. This impacts the smooth completion of tasks
and negatively affects team performance. Therefore, it
is preferable to adhere to the specified acceptance plan
to avoid improper completion of work, as shown in the
table below, which illustrates the capacity, the
acceptance plan, and the number of accepted students
for undergraduate studies for the academic year (2020-
2021), compared with the academic year (2021-2022).
Table (4): Capacity, Acceptance Plan, and Number of Accepted Students in Graduate Studies
Colleges
Number
of
Students
Planned
for
Admission (2)
Number of
Students
Accepted
(3)
Deviation
Percentage
(3-2)/2×100
Number
of
Students
Planned
for
Admission (5)
Number of
Students
Accepted
(6)
Deviation
Percentage
(6-5)/5×100
Medicine
121
310
156%
127
317
150%
Engineering
89
169
90%
91
107
18%
Information
Engineering
16
32
100%
16
29
81%
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Law
16
81
406%
19
53
179%
Science
49
72
47%
37
61
65%
Political Science
32
108
238%
32
72
125%
Business
Economics
10
28
180%
15
17
13%
Biotechnologies
10
28
180%
12
18
50%
High Institute for
Infertility
Diagnosis
11
35
218%
11
26
136%
Total
354
863
144%
360
700
94%
Source: Prepared by the researcher based on data from Al-Nahrain University.
From reviewing the table above, it is clear that there
was an increase in the number of graduate students
accepted compared to the capacity and admission plan
for the year (2020-2021). As indicated by the deviation
percentages, the highest percentage was for the
College of Law at (406%), followed by the College of
Political Science at (238%), and the High Institute for
Infertility Diagnosis with a deviation of (218%). The
College of Business Economics and the College of
Biotechnologies both had a deviation percentage of
(180%), followed by the College of Medicine at (156%),
and the College of Information Engineering at (100%).
The College of Engineering had a deviation of (90%),
followed by the College of Science at (47%).
There was also an increase in the number of students
accepted compared to the capacity and admission plan
for the year (2021-2022). The highest deviation
percentage was again for the College of Law at (179%),
followed by the College of Medicine at (150%), and the
High Institute for Infertility Diagnosis at (136%). The
College of Political Science had a deviation of (125%),
and the College of Information Engineering had a
deviation of (81%). The College of Science had a
deviation of (65%), and the College of Biotechnologies
had a deviation of (50%). The College of Engineering
had a deviation of (18%), while the College of Business
Economics had the lowest deviation at (13%).
This discrepancy is attributed to the number of
expansions and the number of seats granted in each
expansion, based on decisions made by the Ministry of
Higher Education and Scientific Research. The number
of accepted students does not align with the number of
staff, which has led to congestion in the workload of
each staff member. They are tasked with issuing
university orders, graduation orders, statistics, and
follow-ups, which has resulted in numerous errors.
Before presenting the results of the evaluation of
internal control in the department, it is essential to
mention the tasks of the departments within the
section as follows:
A.
Tasks of the Admission Division:
•
Preparing and following up on the admission
plan and academic backgrounds sent from the
university colleges and reviewing them to ensure
compliance with the applicable regulations after
approval by the university council. These plans are then
sent to the Ministry of Higher Education and Scientific
Research for the official approvals required to begin the
academic year before the admission deadline set by the
Ministry.
•
Issuing an annual guide that includes the
programs, curricula, and study hours for each academic
program in the university's colleges, as well as the
requirements for obtaining a degree in each
specialization.
•
Sorting and reviewing the results of the
admission process through the electronic application
and admission system, and issuing university orders for
student acceptance.
•
Preparing continuous statistics on the number
of accepted students for each academic year.
•
Reviewing the requests from colleges
regarding the establishment of new graduate programs
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in accordance with the regulations and conditions for
establishing new departments. This is done to
communicate with the Ministry to obtain the necessary
approvals and official endorsement.
•
Issuing circulars and instructions related to the
admission process for graduate studies, which are
issued by the Ministry of Higher Education and
Scientific Research
B.
Tasks of the University Orders Division:
•
Verifying the completion of requirements for
graduate studies and issuing university orders for
granting higher degrees to students.
•
Issuing graduation certificates for students in
both Arabic and English.
•
Issuing graduation endorsements for students
in both Arabic and English.
•
Preparing continuous statistics on the number
of graduated students for each academic year.
C.
Tasks of the Student Affairs Division:
•
Issuing university orders for (re-enrollment of
graduate students, extensions, and deferments for
graduate students).
•
Following up on the mechanism of reducing
tuition fees for graduate students according to the
circulars issued by the Ministry of Higher Education and
Scientific Research.
•
Preparing statistics on the number of students
re-enrolled in their studies, and students whose studies
have been deferred, for each academic year.
The researcher, based on observations and inquiries
regarding the effectiveness of the internal control
procedures followed in the department, classified the
results according to the three internal control divisions
as follows:
Administrative Control:
There is a weakness in the
internal control procedures, as the following points
were observed:
A.
Delays in issuing university orders for graduate
students, despite each employee performing their
assigned tasks. This delay is due to the delay in
receiving the documents from the university colleges,
as well as errors in student grades and scores. This
indicates a clear weakness in the coordination between
the university administration and the colleges, which
negatively impacts the work process.
B.
Lack of accuracy in preparing the required tables by
the Student Affairs Division. The researcher found an
error in preparing the acceptance tables for students in
2020. While collecting data, the researcher noticed an
acceptance plan for students for the College of
Engineering and the College of Science for 2020 from
the Admission Division. However, no students were
accepted for that year. Upon inquiring with the
relevant staff member, it was found that a
supplementary letter had been sent by the colleges to
the administration, but the letter was filed without the
data being entered.
2.Internal Control:
There is a weakness in the internal
control procedures, as it was observed that there is
only one authorized person working on the electronic
portal for the Admission Division, despite the presence
of an alternative. However, the alternative does not
carry out the work in the absence of the authorized
person. The concerned individual removes the
computer from the university to work after official
working hours, without the proper approvals, which
exposes the
department’s
files to loss of confidentiality
and potential breaches.
Based on the results of the internal control procedures
evaluation, the researcher sees the need to address the
following points in order to eliminate the identified
weaknesses:
1.
Providing adequate staff:
There is a need to ensure
that the number of working individuals in the colleges
is sufficient to avoid errors and complete the work
within the designated time frame.
2.
Accuracy in data management by the Student Affairs
Division:
All data should be entered and saved
accurately before being stored in the designated folder,
making it easier to retrieve the data when needed. The
person responsible for the task or activity should be
held accountable by assigning specific responsibilities
to each working individual. This can be done by creating
a clear job description, which should be well-known
and defined for the staff.
3.
Ensuring the alternative performs all tasks in the
absence of the authorized person:
In the absence of
the authorized individual, the alternative should
perform all tasks to prevent the authorized person
from taking the computer outside the institution. This
will help implement internal control tools by ensuring
regular staff rotation.
CONCLUSIONS AND RECOMMENDATIONS
First: Conclusions
1.
It is essential to oblige the senior management to
implement internal control policies and procedures.
2.
The internal auditor has the ability to use one or more
methods for evaluating internal control.
3.
The failure of the substitute to perform the tasks of
the authorized individual in their absence leads to the
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69
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authorized individual removing the laptop from the
university without obtaining the necessary approvals to
carry out the work.
4.
Lack of accuracy in preparing the acceptance table for
the year 2020, as the researcher observed a
discrepancy during the data collection process
between the admission plan and the actual number of
students accepted for the College of Engineering and
the College of Sciences.
5.
The number of staff working does not align with the
volume of work, as the number of accepted students at
the university exceeds the planned capacity
Second: Recommendations
1.
The senior management should implement internal
control policies and procedures to achieve the desired
goals.
2.
The internal auditor should use scientific methods to
determine the nature, timing, and extent of audit
procedures to express an opinion, which will positively
reflect in achieving internal control objectives.
3.
The substitute should perform the tasks in the
absence of the authorized person to prevent taking the
laptop outside the institution.
4.
Accuracy should be maintained while performing
tasks to avoid making mistakes.
5.
It is essential to provide an adequate number of staff
working in the departments (colleges) to avoid errors
and ensure that work is completed within the set
timeframe
REFERENCES
Al-Wardat, Khalaf Abdullah, "Internal Auditing Guide,"
Al-Ariya Publishing and Distribution, 1st Edition,
Amman, Jordan, 2013.
Al-Zanibiyat, Ali Abdul Qader, "Auditing Accounts in
Light of International Standards: Theory and Practice,"
Functional Library Department, 3rd Edition, Amman,
Jordan, 2010.
Bungartz, D.R. Oliver, and Srobel, Gregor , value added
by internal control, Results of a European survey, R.S.M
Germany,(2012).
Bungartz, D.R. Oliver, and Srobel, Gregor, "Value Added
by Internal Control," Results of a European Survey,
R.S.M Germany, 2012.
Financial Control Bureau, "Guideline for the Internal
Audit Unit in the Republic of Iraq," 2019.
Hamdan, Khawla Hussein, Shammari, Hussein Karim,
"The Impact of Broad Recommendations on Quality
Costs," Journal of the College of Science City University,
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Jaleela Aidhan Hlehil, Hussein Saleh Karim, "Modern
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Publishing and Distribution, 1st Edition, Iraq, 2019.
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