The effectiveness of internal control systems on accounting disclosure and their impact on the quality of accounting information in financial statements An analytical study of economic institutions operating in the Iraqi market

Abstract

Internal control systems, in their accounting concept, are an integrated organizational system that includes a set of policies, procedures, and means adopted by economic institutions with the aim of protecting their assets, ensuring the integrity, accuracy, and reliability of accounting information, effectively enhancing productive and economic efficiency, and ensuring compliance with the policies, procedures, and plans established by management. Internal control also helps reduce financial errors, whether intentional or unintentional, by providing an effective control system that ensures the integrity of financial and administrative operations, this study focuses on understanding the control environment, its procedures, and its various methods for detecting its impact on the accuracy and integrity of accounting information in financial reports and statements. The results of the study demonstrate that internal control plays an effective role in presenting this information with high quality, which positively impacts the efficiency of economic institutions and improves their performance. The study also showed that strengthening this role requires supporting the independence of internal control departments within the organization's organizational structure, and not subjecting them administratively to the departments or units over which control is exercised. The study recommended the need to pay attention to developing the scientific and professional competencies of internal auditors, and to work on developing their skills through continuous training programs, in addition to employing modern technologies in implementing audit and oversight work, which contributes to raising the level of professional performance and improving the quality of oversight work. She also stressed the importance of adhering to the rules of professional conduct issued by the Iraqi Syndicate of Accountants and Auditors, in order to ensure keeping pace with the rapid developments witnessed by the accounting and auditing profession.