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PUBLISHED DATE: - 30-07-2024
DOI: -
https://doi.org/10.37547/tajssei/Volume06Issue07-19
PAGE NO.: - 171-187
THE ROLE OF INTERNAL AUDIT IN
IMPROVING THE QUALITY OF FINANCIAL
REPORTS
Aneesa Qasim Hussein
Karbala University/ Faculty of Administration and Economy, Iraq
Mushtaq Talib Abdulameer Alshammari
Karbala University/ Faculty of Administration and Economy, Iraq
INTRODUCTION
Internal audit plays a vital role in developing and
enhancing performance and providing credibility,
reliability, and impartiality to ensure the efficiency
of improving the quality of financial reports with
its money of great importance in adding value to its
activities and improving its operations, mainly if it
is characterized by efficiency and effectiveness,
and the internal audit profession is currently
receiving great global attention and support by
boards Internal audit are distinct topics that also
reflect the level of standardization of information
and help in monitoring and tracking management
performance, so the problem posed by this study
revolves around a critical point, which is whether
internal audit contributes to enhancing the quality
of financial reports.
Internal Audit
The sources explained that the internal audit
profession in general and internal audit, in
particular, is an ancient profession, as the sources
explained that internal audit predates the
Christian era; at the end of the fourteenth century,
the employer (owner), when he suspected of
treason, appointed someone to verify the accounts
so that the person was sitting with the accountant
to listen to what he had to say about the
Babylonian (about 3000 BC) and evidence
indicates the existence of auditing activity, in
Ancient China, Greece, Rome and the Latin
meaning of the Word (auditor, he hears hearer or
listener) because in Rome auditors work to hear
declarations or statements of taxpayers from
farmers about the results of their work, fees, and
taxes owed to them to evaluate the results of
currency and its actions and determine the effects
reflected on those results to detect errors.
RESEARCH ARTICLE
Open Access
Abstract
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Many of the studies covered in this study indicate
the impact of internal audits on the quality of
financial reports. One of the studies conducted by
sepasi,2017)) entitled "Internal Audit Board of
Directors and Financial Reporting Quality the goal
the research indicates that it is expected that high-
quality internal audit leads to the preparation of
high-quality financial reports, as high-quality
financial reports express themselves in the quality
of profits, as well as profits have played a
significant role in the capital market for a long
time, as for the study conducted by (Ekonomi,
2018) entitled The Role of the Internal Audits to
the Quality of Financial Reporting, there is a
significant role of internal audit in the quality of
financial reports, the quality of financial reports is
higher if the role of internal audit has a role in
achieving and understanding the objectives,
management, scope of work, application of
principles and implementation of the internal
audit function
،
Albawwa, 2021)) focused on the
study entitled "The Relationship Between Internal
Auditors Personality Traits, Internal Audit
efficiency, And Financial Reporting Quality:
Empirical Evidence from Jordan" that personal
traits have indirect effects on the quality of
financial reports through the effectiveness of the
internal audit function and also that internal
auditors with high scores in openness to
experience, job stability and conscientious traits
can be among the most important contributors to
the effectiveness of the internal audit function and
also that the personal traits of internal auditors can
be considered as an intangible resource and the
outsiders Departments, auditors, human resources
and internal audit executives.
Literature Review
The Concept of Internal Audit:
Internal audit is an essential process that controls
the accounting work of any economic unit, where
internal audit has been defined as a system for
developing and measuring internal performance
regarding the audit of inputs, processes, outputs
and results, an independent evaluation function
established within the economic unit for the
purpose of examining and evaluating the activities
carried out by this unit (Gurama & Mansor, 2018:
73), Raji pointed out that audits are generally tools
for examining complex processes, to determine
whether they are committed or not to comply with
the economic units policy, standards and
regulations that the "IEEE" standard for software
development that complies with the units policy,
standards or regulations, an audit is defined as an
independent assessment of the conformity of
software products and processes with regulations,
standards, guidelines and specifications and
reporting these results to management for the
purpose
of
decision-making,
established
procedures and plans (Raji, 2020: 33).
Handoyo explained that internal audit is a
performance function within the economic unit
and is similar to governance designed to increase
value for the purpose of improving organizational
performance, this activity can help achieve the
objectives of the economic unit through a
disciplined approach to improving and evaluating
risk management processes control and
governance through activities in the form of
independent and objective consultation and
assurance (Handoyo et al., 2021: 47), is a
systematic process through which information and
assurances are objectively obtained rational
decision-making and action (Bandar et al, 2021:
1011).
The main objectives of the internal audit are to
ensure the optimal use of the resources of the
economic unit, protect assets from embezzlement
and manipulation, ensure the correctness of the
data, accuracy, and the ability to rely on them
according to the plans set to achieve the objectives
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of the economic unit and the internal auditor
provides a neutral point of view requested by the
board of directors and senior management to
understand what is happening in the field with
clients, as internal and external audits have
significantly different goals, internal auditors
generally do not spend much time searching for
financial accounts, so internal auditors audit their
companies over some time, a year and often
months after From another point of view, the
objectives of internal audit are to ensure the
reliability and integrity of information. The
internal auditor should review the reliability and
integrity of procedures, assess the economy and
efficiency with which resources are used to
achieve the set goals and objectives, take a deeper
look at compliance with external and internal
rules, and ensure that the policies and rules of the
process are adequate, mitigate risks and
effectiveness in terms of the appropriateness of the
process about the achievement of overall
objectives (Louwers et al., 2018, p. 684), and
(Kundinger, 2020: 16-17)
The Importance of Internal Audit
The importance of internal audit is one of the main
functions of Management, which is a safety valve to
preserve the resources of the economic unit and is
an auxiliary factor in the allocation of human
resources in terms of the implementation, control,
or control process with the best possible
efficiency(Hamdan & Wali, 2024, p. 372),
inaccurate accounting reports that have not been
audited conceal waste and inadequacy and prevent
the allocation of scarce resources rationally.
Therefore, the role played by the operational
auditor on activities promotes the optimal use of
resources, whether human or material (khanate,
2022: 27). The importance of internal audit is
shown by the fact that it is activities within the
economic unit carried out by individuals appointed
by management for specific purposes, being a
control tool that helps employees effectively
perform their functions. Internal audits attempt to
achieve governance goals by enhancing
accountability and transparency in financial
management, reducing corruption, and reducing
risks. The internal audit requires organizational
independence, professional auditing standards,
and adequate funding for controlled access (Fraser
et al., 2021, p. 67).
Characteristics of Internal Audit
Internal audits are a mainstay of internal control,
and some of their characteristics can be
mentioned.
1-Independent evaluation activity: The internal
auditor must be independent of the activities he
audits and report administratively to the highest
level in the economic unit's organizational
structure, such as the board of directors or the
audit committee (Al-ajili, 2022: 33).
2-an activity characterized by independence:
Although internal audit is one of the functions of
the economic unit, it is independent of other
functions, so the auditor must be independent,
professionally experienced, and characterized by
efficiency and objectivity (Mohammed &
Mohammed, 2022, p. 10).
Types of internal audit:
Many types of internal audit fall under the internal
audit framework and achieve the same goals, but
the differences appear in the audit perspective and
performance levels that govern all types.
1.Compliance audit: An audit is conducted to
determine whether the economic unit has
complied with the applicable regulations and
policies, whether those established by internal or
external parties or to examine whether compliance
with the rules and procedures established by the
Competent Authority has been carried out by
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individuals in the economic unit (Bohari, 2022, p.
17).
2. Financial audit: It is defined as the complete and
systematic examination by the internal auditor of
accounting financial statements and records and
all operations related to those records to
demonstrate and determine the extent to which
they comply with the principles of generally
accepted accounting and management policies of
the economic unit (Dhu, 2018, p. 124).
3. The operational audit is the extent of control in
selecting and evaluating operational and
administrative processes and the performance
results of various activities or units that exceed
what the audit process requires (Koerniawan,
2021: 30). the operational audit identifies the
activities subject to audit, after which the audit
process is planned. After the audit process is
carried out, the final report is written, and at the
end, the response to what is contained in the Sent
report is followed up. The operational audit
definition is the extent of control in selecting and
evaluating operational
and
administrative
processes and the performance results of various
activities or units that exceed what the audit
process requires (Koerniawan, 2021: 30).
4. Performance audit: Performance audits
contribute to improving efficiency, economy, and
effectiveness and are a means of incorporating
reforms into public sector practices through the
recommendations contained in the auditors'
reports (Torres et al., 2019, p. 431)
Quality of Financial Reports
Financial reports are viewed as the means by
which information is provided by the management
of the economic unit to users and are generally
considered part of the communication process this
is the description of the financial report within the
report of the committee responsible for preparing
financial reports, which was formed before the
well-known American Institute of Certified Public
Accountants and based on the Jenkins report
entitled (Improving the business reporting
process) (according to, 2021: 40), and that the
quality of financial reports is extremely important
in maintaining the efficiency of financial markets,
as the study indicated that the global financial
crisis affected the quality of financial reports, as it
led to a significant disruption in financial markets
(Tambingon et al, 2018: 265), and because of the
frequent financial crises, the need to produce high-
quality financial reports has become a global
phenomenon, as owners, stakeholders, board
members and professional accountants raise more
topics of interest to researchers, quality is defined
as the achievement of something with a high
degree of great value and good quality, and the
Word quality comes from (presence), and the
quality of the thing means good, and any good
came from the thing in Word or deed, and the good
is the opposite of the bad (Khadr, 2021: 50), and
quality is defined by the convention that it is
associated with this includes control and emphasis
on the final output of the system by minimizing
defects in performance (Hsu & Yang, 2022: 2), the
quality of the financial report was defined as the
accuracy of the information transmitted through
the financial reporting process (Assad &
Alshurideh, 2020: 255).
It is defined as the reports that express the
truthfulness of the information in the items
presented in those reports and related to all
activities, which are characterized by their
distance from bias, in addition to being non-
misleading to be more beneficial to decision-
makers and a measure of the nature of the work
carried out by the economic unit (Khalaf, 2021, p.
324).
The Importance of the Quality of Financial Reports:
The importance of financial reports stems from
information and is an effective and essential means
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of communication between management and users
to provide all parties with the information they
need to make appropriate investments. Therefore,
the quality of financial reports of the economic unit
is of great importance in the business environment
(Neema & Khmaila, 2021, p. 23). The objectives of
the quality of financial reports can be summarized
as follows:
1-High-quality financial reporting enhances trust
and transparency, which reduces information
mismatches (Soyemi&Olawale, 2019, p. 449).
2-Accurate financial reporting can help reduce bad
and ethical investment decisions and problems,
allowing us to identify better investment
opportunities and be good and effective (Al'alam et
al., 2019, p. 40).
Financial Reporting Quality Metrics
1-Accounting information quality metrics: The
accounting information quality characteristics
model is a modern entry point for evaluating the
quality of financial reports. The model examines
the usefulness of the information contained in
financial reports to facilitate the decision-making
process by determining the quality characteristics
of financial reports. According to the International
Accounting
Standards
Board,
accounting
information characteristics are the basic principles
for assessing the quality of financial reports. It
relates to the credibility of the objectives and the
quality of information disclosed in the financial
reports of the economic unit. the usefulness of
qualitative features facilitates the evaluation of the
usefulness of financial reports, which ensures high
quality (Hesarzadeh, 2019, p. 8)
2- Profit quality metrics: Over the decades, the
conceptual framework of financial reporting has
been guiding researchers and users on how to
evaluate the quality of financial reports, in
particular the quality of profits, and the profits are
of high quality, as they provide additional
information about the financial performance of the
economic unit and were relevant to the decision
maker because the quality of profit is a crucial
indicator of the accuracy of financial data used by
interested parties such as creditors, lenders,
investors, etc. it helps to provide a benefit to
decision makers that the quality of profits is an
essential term in economics and accounting,
despite there are significant differences in
measuring and quantifying them (Saleh et al, 2021,
p. 3).
3 - Accounting reticence measures: The
International Accounting Standards Board (ISAB)
has shown that the concept of reticence is to
exercise caution in the crisis provisions for the
numbers of estimates included in financial reports
under conditions of uncertainty, taking into
account not to overestimate the valuation of assets
and gains and not to underestimate the values of
liabilities and losses. Research has increased in
recent periods on the subject of accounting
reticence due to the recent global financial crises,
which have made banks more cautious in lending
and borrowing and exert more accuracy in
evaluating accounting figures(Hussein & Abdul
Mustafa, 2019, p. 65)
،
The Components of the Quality of Financial
Reports:
1-Internal Audit efficiency: where you understand
the importance of internal audit in ensuring the
compilation of high-quality and highly efficient
financial reports and that internal auditors should
take advantage of the basic knowledge,
capabilities, and experience to carry out the
Internal Audit Service efficiently according to a
study conducted by the Institute of internal
auditors (IIA), efficiency is appropriately defined
as the ability to perform the task where internal
auditors with long experience, competence and
professional independence have many advantages
of detecting errors in the financial report and
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identifying the source of errors (Tambingon et al,
2018, p. 263).
2-Efficiency of the Accounting Information System:
The accounting information system is an essential
element and has a significant and robust impact on
the quality of financial reports and is one of the
factors contributing to the issuance of a high-
quality and efficient financial report, on which
financial reports depend inputs, processes and
benefits resulting from the accounting information
system. as the basis for new financial reporting
systems, the three parts (inputs, processing, and
outputs) are integrated and sustainable (TARSHI &
Khalaf, 2020, p. 768).
3-Human Resource Efficiency: Human resources
refer to the human capital of the economic unit.
Human Capital also refers to the knowledge, skills,
and abilities that can be applied to the production
of professional services and economic activity and
are a source of innovation and ideas. The better the
quality of financial reports, the more efficient the
existing human resources (Salah et al., 2021, p.
201).
Research Methodology:
The methodology of any scientific research is a
roadmap in which the researcher presents the
research problem that prompted him to research,
the goals in order to solve this problem, the
importance of research, the importance of solving
the research problem, and the scientific research
method used to solve the research problem,
leading to a specific result that the study seeks to
prove.
The Problem of Research:
The financial reports disclosed by economic units
of different types are significant for decision-
makers (investors in particular 9 to rationalize the
decision to invest or not in that economic unit in
light of the quality of financial and accounting
information revealed by those reports and what
reveals the expected future of that economic unit,
but promoting the adoption of :
Does internal audit contribute to enhancing the
quality of financial reports
Research Objective:
The research aims to achieve the following:
1-Measuring the impact of internal audit on the
quality of financial reports
2 Provide recommendations that the researcher
considers essential for enhancing the quality of
financial reports in the target units
3-Enriching the Arabic library with a research
effort that can increase accounting knowledge
The importance of research: Research gains
importance from the size of the impact of its
variables (the role of internal audit in improving
the quality of financial reports), where the internal
auditor can improve the quality of financial
reports. There is a growing concern about the
reliability of financial reports as they may not
accurately reflect the actual performance of the
economic unit. Internal audits play a vital role in
filling this gap and improving the quality of
reports.
Research Hypotheses:
The current study is based on the hypothesis
derived from a question that was asked
1-The first central hypothesis: There is a
significant correlation between internal audit and
the quality of financial reports)
2-The second central hypothesis: internal audit
significantly affects the quality of financial reports
Research Community: The research community
consists of a sample of auditors and accountants
working in the economic units listed on the Iraq
Stock Exchange, and 230 questionnaire forms
were distributed.
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Figure (1-1) the hypothetical model of research
Source: prepared by the researcher
The practical side : To properly test the study
hypotheses and to ensure the accuracy of the
selection of the quality of statistical tests and final
results in order to reach the correct results,
through which recommendations can be built that
contribute to the understanding of the study
variables
First: measuring honesty and constancy: the
researcher tested the honesty and constancy of the
study scale according to the following table:
Features
The fackronbach scale
Internal audit
o.83
Quality of financial reports
o.84
Table (1-2) test of honesty and constancy
Source: prepared by the researcher
The above table shows that the facronbach values
are higher than 0.70, and this indicates that the
scale has a high stability.the apparent honesty of
the scale was measured by displaying a set of
arbitrators (appendix No. 1). the researcher took
all the observations.
Second: descriptive statistics of the study variables
The table shows the descriptive statistics of the
study variables
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Table (2-2) class statistics of study variables
Arithmetic
mean
standard
deviation
1-compliance audit
3.77
3.62
3.72
3.59
3.68
1.16
1.22
1.22
1.24
1.21
2-operational audit
3.68
1.21
3-financial audit
3.77
3.58
3.57
1.22
1.27
1.27
4-performance audit
3.64
1.25
Source: prepared by the researcher
1-The arithmetic mean of the compliance audit
dimension was 3.77, and the standard deviation
was 1.16; this indicates the awareness of the study
sample taken after the compliance audit in the field
of internal audit
2-The operational audit achieved an arithmetic
mean of 3.62 and a standard deviation of 1.22,
which indicates the strength of the study sample's
awareness to take this dimension in the field of
internal audit
3-The financial audit achieved an arithmetic mean
of 3.72 and a standard deviation of 1.22, which
indicates the strength of the study sample's
awareness to take this dimension in the field of
internal audit
4-The arithmetic mean of the performance audit
dimension reached 3.59 and a standard deviation
of 1.24; this indicates the strength of the study
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sample's awareness to take this dimension in the
field of internal audit
5-The Information Systems Audit achieved an
arithmetic mean of 3.68 and a standard deviation
of 1.21-1.24, which indicates the strength of the
study sample's awareness to take this dimension in
the field of internal audit
Figure (1-2) internal audit dimensions
Source: prepared by the researcher
6-The arithmetic mean of the scale of accounting
information characteristics reached 3.77 and a
standard deviation of 1.22, which indicates the
strength of the study sample's perception to take
this dimension in the field of financial reporting
quality
7-The earnings quality scale achieved an
arithmetic mean of 3.58 and a standard deviation
of 1.27, which indicates the strength of the study
sample's perception to take this dimension in the
field of financial reporting quality
8-The arithmetic mean of the accounting
reservation scale reached 3.73 and a standard
deviation of 1.25, this indicates the strength of the
study sample's awareness to take this dimension in
the field of financial reporting quality.
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Figure (1-2): Financial Reporting Quality Metrics
Third: Testing the Correlation Relationships Between the Study Variables
The first primary hypothesis states that (there is a
significant correlation between internal audit and
the quality of financial reports) and five sub-
hypotheses have branched out from it, as shown
below: -
1-There is a significant correlation between
compliance audits and the quality of financial
reports.
The second sub-hypothesis, which is equally
significant, proposes a positive and significant
correlation between the operational audit and the
quality of financial reports. This finding
underscores the impact of operational audits on
the quality of financial reports.
3-There is a significant correlation between the
financial audit and the quality of financial reports.
4-There is a significant correlation between
performance audits and the quality of financial
reports.
5-There is a significant correlation between the
audit of Information Systems and the quality of
financial reports.
The correlation matrix for the first main
hypothesis, as shown in Table (3-18), reveals that
all correlation relationships were positive and
significant at the level of (%1). At the sub-level, the
largest correlation was between operational audit
and the quality of financial reports at (0.54), with a
significant correlation at the level of (1%). The
lowest correlation was between compliance audit
and performance audit at (0.48), with a significant
correlation at the level of (1%). The most
significant finding, however, is the correlation
between internal audit and the quality of financial
reports (0.69), which is a significant relationship at
the level of(1%). These results unequivocally
indicate the acceptance of the first main hypothesis
and its sub-hypotheses, reinforcing the idea that
there is a significant correlation between internal
audit and the quality of financial reports. This
suggests that the more attention is paid to internal
audits, the more it directly reflects on the quality of
financial reports prepared by the audited
economic units.
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Independence
Quality of financial
reports
Compliance audit
0.48
**
Operational audit
0.54
**
Financial audit
0.57
**
Performance audit
0.48
**
Information Systems
Audit
0.49
**
Internal audit
0.69
**
Table (3-2) testing the first main hypothesis
Source: prepared by the researcher
Second: - Testing the Hypothesis of Influence
between the Study Variables
In order to test the influence relationships
between the study variables, the researcher used
the multiple Linear Regression coefficient, as
follows;
4-the Second Main Premise: (internal audit
dimensions significantly affect the quality of
financial reports).
Table (3-21) below shows the analysis of the
fourth main hypothesis
Table (2.21) testing the fourth main hypothesis
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Model
Unstandardized
Coefficients
Standardiz
ed
Coefficient
s
t
Sig.
Collinearity
Statistics
B
Std. Error
Beta
Toleran
ce
VIF
1 (Constant)
0
.725 .210
3.45
2
0
.001
Compliance
audit
0
.172
0
.053
0
.181
3.22
6
0
.001
0
.727 1.375
Operational
audit
0
.166
0
.054
0
.189
3.08
8
0
.002
0
.608 1.644
Financial audit
0
.226
0
.050
0
.273
4.55
7
0
.000
0
.634 1.578
Performance
audit
0
.122
0
.045
0
.158
2.73
5
0
.007
0
.684 1.462
Information
Systems Audit
0
.114
0
.050
0
.135
2.28
6
0
.023
0
.650 1.538
a. Dependent Variable:
R
2
=0.50
F=43
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Source: preparation of the researcher based on the results of the calculator
The above table shows the following:
1 - The audit of compliance positively affects by
(0.172) the quality of financial reports if it is
increased by one unit, which is a significant impact
at the level of (1%) because the value of (t)
calculated for the regression coefficient reached
((3.226, which is significant at the said level, and
the value of the amplification coefficient (VIF),
which measures the lack of self-correlation
between the audit of compliance and the rest of the
internal audit dimensions reached (1.375), which
is less than ten the dimensions of internal audit,
which enhances the accuracy of the results.
2 - The operational audit positively affects by
(0.166) the quality of financial reports if it is
increased by one unit, which is a significant impact
at the level of (1%) because the value of (t)
calculated for the regression coefficient reached
((3.088, which is significant at the mentioned level,
and the value of the amplification coefficient (VIF),
which measures the lack of self-correlation
between the operational audit and the rest of the
internal audit dimensions reached (1.644), which
is less than ten the dimensions of the internal audit,
which enhances the accuracy of the results.
3 - The financial audit positively affects the quality
of financial reports by (0.226) if it is increased by
one unit, which is a significant impact at the level
of (1%) because the value of (t) calculated for the
regression coefficient reached ((4.557, which is
significant at the mentioned level and the value of
the amplification coefficient (VIF), which measures
the absence of self-correlation between the
financial audit and the rest of the internal audit
dimensions reached (1.578), which is less than ten
this enhances the accuracy of the results.
4 - The performance audit positively affects the
quality of financial reports by (0.122) if it is
increased by one unit, which is a significant impact
at the level of (1%) because the value of (t)
calculated for the regression coefficient reached
((2.735, which is significant at the mentioned level,
and the value of the amplification coefficient (VIF),
which measures the lack of self-correlation
between the performance audit and the rest of the
internal audit dimensions, reached (1.462), which
is less than ten and the rest of the internal audit
dimensions, which enhances the accuracy of the
results.
5 - The audit of Information Systems positively
affects by (0.144) the quality of financial reports if
it is increased by one unit, which is a significant
impact at the level of (5%) because the value of (t)
calculated for the regression coefficient reached
((2.286, which is significant at the mentioned level,
and the value of the amplification coefficient (VIF),
which measures the lack of self-correlation
between performance audit and the rest of the
internal audit dimensions, reached (1.538), which
is less than ten and the other dimensions of
internal audit, which enhances the accuracy of the
results.
6 - The value of (F), which measures the morale of
the regression model, reached (43), which is a
moral value at the level of (1%), and the
explanatory power of the regression model(R2)
reached (0.50), which means that the five internal
audit dimensions explain (50%) of the changes
that occur in the quality of financial reports, while
the remaining (50%) are due to other variables not
included in the model, which the researcher infers
acceptance of the second central hypothesis in the
sense of (internal audit dimensions the equation of
multiple linear regression will take the following
form
Quality of financial reports= 0.725 + 0.172
compliance audit+0.166 operational audit+ 0.226
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financial audit+ 0.122 performance audit+0.114
Information Systems Audit
It is noted from the above equation that the most
influential type of audit in the quality of financial
reports is the financial audit, followed by the
compliance audit, then the operational audit, the
performance audit, and finally, the audit of
Information Systems.
CONCLUSIONS
1-One of the internal auditor's most important
priorities is to identify errors in administrative
work and alert those responsible for them.
2-Financial reports are characterized by high
quality if the main characteristics of accounting
information are provided in them (assertiveness
and impartiality) due to the importance they
represent for users of financial reports in making
rational investment decisions. Also, metrics based
on the main characteristics of financial reports are
one of the most critical measures of the quality of
financial reports.
3-There is a weakness in comparing the results of
the economic unit's work with internal and
external systems to the rest of the tasks after the
compliance audit.
4-There is a high awareness among auditors that
their tasks are not limited to financial aspects but
extend to technical aspects, even if this requires
the use of experts
5-The method of preparing financial reports needs
to be reviewed so that even a non-specialist in
accounting matters can benefit from it
Recommendations:
1-The need to raise stakeholders ' awareness of the
importance of the role of the internal auditor in
adopting any issues that raise doubts about the
poor quality of financial reports or the ability of the
economic unit to continue through scientific
workshops and orientation lectures.
2-The need to follow up the actual performance
with the planned performance, identify deviations
and what are their causes, develop remedies for
them, and follow up their implementation
3-The need for auditors to compare the
performance results of economic units disclosure
during the current audit period with the
performance results during previous periods to
notice the development or decline in performance
by following up on the commitment of units to
address previous observations
4 - The work of the auditor is not limited to
financial aspects but must go beyond it to other
aspects, and this requires the introduction of
auditors' special courses in order to increase their
skills and abilities
5-Enhancing the orientation of economic units
towards supporting workers, providing work
requirements, and achieving well-being, for
example, providing free transportation for
workers, providing nurseries for children, and
providing health care.
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