The impact of Applying the COSO Framework Internal Control on the quality of Financial Reports in The National Commercial Bank

Abstract

The study aims to know the impact of implementing the internal control system in accordance with the COSO framework for the year 2013 with its five dimensions on the quality of financial reports in the National Commercial Bank. The study followed the descriptive analytical approach on the study population consisting of (156) employees from the departments: the Internal Audit Department, the Compliance Department, and the Risks, Credit Management, Inspection Department, Accounting and Reporting Department, Treasury Department, and the audit and risk committees emanating from the Board of Directors. A questionnaire form was designed and distributed to a sample of 101 employees using a random sampling method. The study reached several results, the most important of which are: There is an effect of applying the framework COSO for the year 2013 AD on the quality of financial reports in the National Commercial Bank, most notably, the presence of a statistically significant effect of the risk assessment dimension on the quality of financial reports at a significance level of (0.05) and it was the highest influence, followed by the presence of a statistically significant effect of the supervisory activities dimension on the quality of financial reports at the level of significance. Significance (0.05), and the study recommends working to raise the efficiency of the National Commercial Bank’s employees in the field of internal control through specialized training programs and courses within the framework of COSO, in addition to strengthening oversight activities, which represent a basic pillar of the internal control system, and focusing on developing an approved and specific long-term plan. Milestones and objectives and circulating them to all departments in a way that ensures reducing the risks facing the bank.