The extent of internal control compliance with the requirements of the Organizations Support Committee and its impact on improving banking performance

Abstract

The current research aims to identify the level of compatibility of internal control systems in private Iraqi banks with the requirements of the Committee of Sponsoring Organizations of The Treadway Commission and the requirements of international regulatory standards And its impact on banking performance. The research includes five variables related to the application of internal control, which are the components of the Committee of Sponsoring Organizations of The Treadway Commission (COSO) (control environment, risk assessment, supervisory activities, And communications, information, monitoring and follow-up systems In addition to banking performance measures that include return and risk. The study adopted the descriptive analytical approach and used an examination form for the purpose of collecting data on private banks. The research reached a set of conclusions, the most important of which is the availability of the five internal control elements compatible with the requirements of the Committee for Supporting Organizations (COSO) at an acceptable rate, in addition to some varying paragraphs in the banks’ adoption of the system. An effective supervisor that keeps pace with changes in the Iraqi banking environment, There is also a positive impact of internal control in improving banking performance. The research recommends the need to activate internal control systems in banks more, develop internal control procedures, and pay attention to risk management, in addition to the need to provide an effective control environment and develop the performance and efficiency of employees.