Evaluating the Internal Control System Using the Integrated COSO Framework and Its Role in the Reliability of Financial Reporting: An Applied Study on Al-Rafidain Bank in Iraq

Abstract

This study aims to highlight the role of internal control examination procedures as a fundamental tool within the integrated COSO framework for enterprise risk management, which is considered one of the most widely adopted international models. The COSO framework comprises five main components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The research focused on demonstrating how these procedures are applied to address control challenges, particularly in the banking sector, which is highly sensitive to risks. A practical application was conducted on Al-Rafidain Bank in Iraq, given its historical and economic significance. The study employed the descriptive-analytical approach to analyze the responses of a sample of the bank’s employees, with the aim of evaluating the reality of applying the internal control system in light of the COSO framework, identifying strengths and weaknesses, and contributing to enhancing the effectiveness of the control system and the reliability of financial reporting.  The study concluded that there is a positive impact of the internal control system according to the COSO framework and its dimensions: control environment, risk assessment, control activities, information and communication, and follow-up activities on the reliability of financial reports.