Information Technology and its Effects on the Financial
Statements Reliability: An Applied Study on Commercial Banks
Ali Abdul Ghani Al-Laith
Technical College of Management, Baghdad, Iraq
[Abstract] The study aimed at identifying the importance of the internal control and its adaptation with the
development of the use of information technology and its effect on the reliability of financial statements of commercial banks. The population of the study consisted of all commercial banks. Questionnaires were distributed among them; the researcher designed the questionnaire to target financial managers, internal auditors, and computer section employees who worked at these banks; 122 questionnaires were distributed. The hypotheses of the study were tested using the appropriate statistical methods, which are
Cronbach Alpha, standards deviations and means, and One Sample T-(Test).The results showed a high level of adaptation of internal control systems with the development of the use of information technology and its effect on the reliability of financial statements of the commercial banks. The average level of the hypothesis states that “the adaptation of the internal control systems with the development of the use of information technology in the commercial banks do lead to have high reliability financial statements.”
The results showed the average level of the hypothesis, which states “there are no difficulties for the adaptation of the internal control systems with the use of information technology in the commercial banks.” The study has several recommendations, including the need to control and supervise the banks ' compliance with banking sector legislation or regulations to improve the reliability of financial statements issued by those banks.
[Keywords] internal control system; commercial bank; financial statement; IT; audit; reliability
Information Technology (IT) has
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