The Impact of Corporate Governance in the Internal Control System : A Field Study in the Iraqi Business Environment

Abstract

This research aims to define the concept of corporate governance and clarify the role of its boards of directors in enhancing the effectiveness of the internal control system because it bears the ultimate responsibility for its design, implementation and evaluation ,Therefore, the research relied on the method of the descriptive and analytical approach to achieve the goal. The research sample consists of a number of employees working in the internal control departments in the corporates. The research relied on the questionnaire in collecting data from the sample, analyzing it and testing it according to its statistical approach. The study concluded that, according its statistical results, Improved performance depends on the sobriety of the internal control system based on a coherent corporate governance framework that contributes to good risk management by designing a regulatory structure that defines responsibilities and powers between the parties involved in operational processes. Accordingly, the study recommends determining the weakness and deficiency points in internal control systems’ mechanisms as well as developing and determining plans that focus on addressing this deficiency, developing performance, and obligating all corporates to define governance requirements and strive to implement it and act accordingly.