The Impact of Information Technology Governance Controls on Financial Reporting in the Banking Sector
A Study in a Sample of Iraqi Banks
DOI:
https://doi.org/10.61704/jpr.v24i1.pp41-54Keywords:
Information Technology Governance, Financial Reporting, Qualitative Characteristics of Accounting Information, Central Bank of Iraq, Banking SectorAbstract
The research aims to assess the impact of the information technology governance (ITG) controls issued by the Central Bank of Iraq on financial reporting in the banking sector. The research problem centers around the extent of the influence of ITG controls on the quality of accounting information and, consequently, financial reporting for economic units within Iraqi banks. The research population comprises Iraqi private banks, as they are obligated to follow the ITG Control Guidelines issued by the Central Bank of Iraq. The research sample consists of five Iraqi private banks (Baghdad Bank, Iraqi Commercial Bank, Iraqi Investment Bank, Babel Bank, and Gulf Commercial Bank), chosen for their financial data availability and adherence to ITG controls. The researcher designed an index to measure the extent of ITG controls application in the research sample banks and assessed the quality of financial reporting by analyzing financial statements (balance sheet and income statement) over ten years using the ARIMA and ICM models, along with relevant statistical tools and the SPSS statistical package functions. The researcher concluded that there is a strong correlation between the application of ITG controls in Iraqi banks and the quality of financial reporting for those banks, particularly in terms of the fundamental qualitative characteristics of relevant financial information. The application of ITG controls can enhance the representational faithfulness and reliability of accounting information presented in the financial statements of Iraqi banks, thus contributing to the promotion of the banking sector's standing at both the local and regional levels. The researcher recommends focusing on enhancing the fundamental qualitative characteristics of accounting information concurrently with the effective application of ITG controls to improve the quality of financial reporting.
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