The effect of risk-based financial internal controls on the transparency of financial reporting in the public sector of the Kurdistan Region of Iraq

Document Type : Research Paper

Authors

1 PhD student, accounting field, science and research department, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Accounting, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

3 Assistant Professor, Department of Accounting, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

Abstract

Subject and Purpose of the Article: The Kurdistan Region of Iraq is always facing financial corruption despite having high revenues from oil, customs and aid from other countries. One of the causes of corruption is the existence of possible events and risks that cause weak accountability and transparency. One of the main components of accountability is corporate governance, and one of the key components is advanced internal controls that can manage possible risks. The purpose of this research is to determine the effect of risk-based internal controls on the transparency of financial reporting in the public sector of the Kurdistan Region of Iraq.
Research Method: For this purpose, after identifying the components of risk-based internal controls in the previous articles, 175 closed questionnaires were completed by the financial and budget employees of the public sector of the Kurdistan region and then analyzed with the structural equation technique in the SmartPLS software.
Research Findings: The findings showed that risk-based financial internal controls have a significant effect on the transparency of financial reporting in the public sector of the Kurdistan Region of Iraq. Conclusion, Originality and its Contribution to the Knowledge: Risk-based internal controls with the risk management of government agencies increase the transparency of financial reporting and ultimately financial discipline. Nowadays, according to the fluctuations and risky events, organizations must establish risk-based internal controls in a completely dedicated manner for preventive measures in government institutions.

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History

  • Receive Date: 17 December 2023
  • Revise Date: 30 April 2024
  • Accept Date: 26 May 2024

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