The Mediating Role of the Balanced Scorecard in the Relationship Between Internal Control and the Financial Reports Quality

Abstract

Purpose: this study aims to measurement the role of the mediating of performance evaluation according to the Balanced Scorecard (BS) in the relationship between internal control (IC) and the financial reports quality (FRQ) in Iraqi commercial banks. Theoretical framework: The general framework of the study includes three variables, including performance evaluation according to the BS, in the relationship between IC and the FRQ. Design/methodology/approach: We are used the descriptive-analytical approach. Iraqi commercial banks were identified as a research community, Banks (Bank of Baghdad, Commercial Bank of Iraq, and the Iraqi Investment Bank). It required a survey of the opinions of managers and workers in the banks under study from accountants and auditors, the research sample was represented (managers in all banking departments, consultants, accountants, auditors), (245) forms were distributed and retrieved from them (224) valid for analysis. Findings: The results showed existence of a significant effect of internal control system (ICS) in enhancing the FRQ. Research, Practical & Social implications: The use of the BS as a tool can enhance IC and improve the quality of financial reporting for the banks under study. Originality/value: A few studies investigated the relationship between the studied variables, our study contributes to filling part of the research gap related to the research variables.