Internal Control Practices in Moroccan Banks: A Quantitative Study of Effectiveness, Compliance, and Risk Management

Abstract Setting up a strong and efficient framework is therefore of paramount importance to ensure that these objectives are achieved in strengthening the internal control systems and risk management. This study will therefore dwell on one of these frameworks within the context of Moroccan banks, with a view to assessing the effectiveness of internal control systems and risk management they allow. It addresses the following main question: To what extent is the implementation of the COSO framework effective in improving the efficiency of the internal control and risk management processes within Moroccan banks? This research adopted a quantitative approach that included an exploratory study with bank managers and executives. The main objectives of the study were to establish whether the COSO framework is applied among the Moroccan banks, and it has an impact on internal control within a certain context. The results provide insights into how the application of the COSO framework brings about improved internal control effectiveness and risk management over these banks. This research confirms not only the topicality of the COSO framework but also opens new avenues for further research. This also helps extend the preliminary scope of the study, further investigating how framework implementation variations may impact individual banking operations. Hence, the present study contributes not only to an understanding of internal control systems in Moroccan banks but also lays a foundation for further future research into the optimization of risk management practices in the banking sector. Keywords: Internal control, Accounting, COSO, Bank Sector. JEL Classification:M41 Paper type: Empirical research