Abstract

EVALUATION OF INTERNAL CONTROL PERFORMANCE IN THE CONTEXT OF FINANCIAL INDICATORS - AN APPLIED STUDY IN THE HABBANIYAH MUNICIPALITY DIRECTORATE

Khaled Awad Ibrahim Abd, Professor Dr. Faik Jawad Kazem

Volume: 10 Issue: 3 2020

Abstract:

This current research aims to highlight the role of internal control in evaluating the financial performance of government service institutions, and that the mere existence of an internal control system in any service or non-service institution does not necessarily mean that this system is actually applied to various operations and activities, and the important question remains: Is the internal control system really implemented? Its time is just a people who play limited roles that do not rise to the role of real oversight? Which maintains the properties of the circuits and monitors their various activities and is the safety valve for these circuits. In order to answer this question, the auditor must conduct tests by analyzing the financial statements through the use of analysis methods (vertical analysis) for the financial statements of the Habbaniyah municipality directorate, official documents, and personal interviews. The main objective of analyzing the financial statements is to show the strengths, weaknesses and defects in the various procedures while giving the instructions that would contribute to avoiding these defects and weaknesses in the control system, and to provide information to the relevant authorities that benefit from them according to their different objectives, but the increasing need for information needs to be The process of evaluating the financial performance of the financial statements to compare the performance of the department and its financial position in successive periods of time to evaluate the trends of its financial performance and to identify its strengths and weaknesses, in order to provide additional information on the performance of the financial department in a way that enhances and supports the role of the published financial statements. The research aims to highlight the role of internal control in discovering errors, strengths and weaknesses in the directorate’s financial performance in the field of research. The research adopted financial analysis tools (vertical analysis), through which the financial performance that was taken by the directorate in the field of research will be evaluated, and during the period between (2016-2019). In the end, conclusions were reached.

DOI: http://doi.org/10.37648/ijrssh.v10i03.036

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