Developing the external auditor’s procedures in evaluating the internal control systems of Iraqi economic units according to the updated COSO framework

Abstract

The research aims to explore the extent to which the external auditor’s procedures can be developed in evaluating internal control systems by relying on expert systems according to the updated COSO framework. Personal covers the entire evaluation process, and the different evaluation steps by the auditors, which provide different results for the internal control systems, which is reflected in the weakness of those procedures..

The researcher adopted the questionnaire as a tool for collecting study data from a community composed of auditors in auditing offices and companies in Iraq, in addition to the auditors of the Iraqi Federal Audit Bureau. The number of recovered and valid questionnaires reached (100), or 76% of the total number of questionnaires distributed.

 The researcher concluded a number of results, the most important of which was that the external auditors in Iraq depend on expert systems in evaluating the five elements of internal control according to the updated COSO framework (control environment, control activities, risk assessment, information and communication, follow-up).

The researcher also concluded a number of recommendations, the most important of which are: the necessity of adopting the supervisory authorities, whether they are in the public sector represented by the Financial Supervision Bureau, or audit offices and companies from modern technologies in accomplishing their tasks, and investing in this modern technology because of its importance in improving performance, efficiency and audit quality in addition to the need to develop the specialized skills required to practice auditing using emerging technologies