The impact of internal control systems on the quality of financial reports

ABSTRACT In the modern era, all companies have become interested in the expansion of business sectors and the diversity of their activities and keeping pace with all developments that occur in the world, especially in the fields of technology and economics, as this development has become a starting point for attention and development of internal control systems to organize the companies' business. This study aimed to know the company's internal control systems and their impact on the quality of financial reports for all companies in general, in addition to that, the study aimed to know the impact of internal audit and the control environment that fall under the components of internal control systems. In this study, questionnaires and interviews were used for data collection, as a sample of 46 people working was taken. After obtaining the results, the analysis was carried out using Microsoft software. The study reached many results, the most important of which is that there is a positive relationship between internal control systems and the quality of financial reports, as the more effective and efficient the internal control systems are, the higher the quality of the financial reports, as there must be strong internal control systems for the financial reports to be free from errors, manipulation, and embezzlement. The researcher also recommends the need to pay attention to internal control systems and financial reports and to put in place many plans and programs that help in developing them to prepare financial reports that are credible and reliable.