The Role of International Auditing Standards in Raising the Quality of Internal Controls of Iraqi Oil Companies

Abstract

Objectives: This study aimed to determine the role of international auditing standards in raising the quality of internal control of oil companies in Iraq. Materials and methods: In terms of purpose, this research falls under the category of applied research, and it is cross-sectional in terms of the time of data collection. The required data were collected in the first quarter of 2023. Moreover, in terms of the method used, it is a descriptive survey. The statistical population included 100 financial managers of Iraqi oil companies, the heads of internal audit in the Iraqi oil companies, and the Iraqi oil companies' CEOs. Based on the proposed theoretical foundations, research hypotheses were formulated and the research questions were distributed in the form of a researcher-made questionnaire among the financial managers, the heads of internal audit, and the CEOs of the companies active in the Iraqi oil industry. SPSS software and parametric statistical methods were used to test the hypotheses. Findings: The results of the present study confirmed the research hypotheses. Accordingly, implementing international auditing standards can raise the quality of internal controls. Conclusion: Based on the results of the research, using international standards will lead to a better understanding of the control environment. A better understanding of the control environment will lead to maintaining honest and ethical conduct on the part of the personnel. Furthermore, using these standards will help to give a more effective risk assessment and to have a better understanding of the information system as well as a better understanding of both control activities and control monitoring.