Status of Establishment of Internal Control System in Iranian Banks
A system of effective internal controls is a foundation for the safe and sound operation of banks and helps management to safeguard bank's resources and interests. Since improving performance of internal control system requires recognizing its current status, in this study, an attempt has been...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2022-06-01
|
| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_14271_95196bdf387595a428db6f3a4317b818.pdf |
| _version_ | 1797378255984001024 |
|---|---|
| author | Seyyed Morteza Mortazavi Javad Shekarkhah Jafar Babajani |
| author_facet | Seyyed Morteza Mortazavi Javad Shekarkhah Jafar Babajani |
| author_sort | Seyyed Morteza Mortazavi |
| collection | DOAJ |
| description | A system of effective internal controls is a foundation for the safe and sound operation of banks and helps management to safeguard bank's resources and interests. Since improving performance of internal control system requires recognizing its current status, in this study, an attempt has been made to evaluate the current status of establishment of internal control system in Iranian banks. For this purpose, through the designed questionnaire, experts have been asked to evaluate the current status of effective indicators in establishing internal control system of banks, taking into account the importance of these indicators. Received answers were analyzed using fuzzy delphi method, fuzzy gap analysis, importance-performance analysis and paired sample test. According to experts, the current status of all effective indicators in the establishment of the internal control system of banks was assessed as unfavorable. Findings from fuzzy gap analysis also indicate that except for 3 indicators, there is a significant gap between the current status (what is) and the desired status (what should be) of indicators. Also, according to the findings of importance-performance analysis, out of 119 indicators studied, 113 indicators do not have acceptable performance despite their high importance. In addition, based on the results of the paired sample test, it can be concluded that there is a significant gap between current status and desired status of effective indicators in establishing the five dimensions of the internal control system of banks: control environment, risk assessment, control activities, information and communication and monitoring activities. |
| first_indexed | 2024-03-08T20:05:09Z |
| format | Article |
| id | doaj.art-8ab1815931ce4705a412aba01e62484e |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:05:09Z |
| publishDate | 2022-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-8ab1815931ce4705a412aba01e62484e2023-12-23T10:38:27ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192022-06-011974418310.22054/qjma.2022.63551.231614271Status of Establishment of Internal Control System in Iranian BanksSeyyed Morteza Mortazavi0Javad Shekarkhah1Jafar Babajani2Ph.D. Student in Accounting, Allameh Tabataba'i University, Tehran, Iran.Associate Professor, Accounting Dept.,Allameh Tabataba'i University, Tehran, Iran.Professor, Accounting Dept., Allameh Tabataba'i University, Tehran, Iran.A system of effective internal controls is a foundation for the safe and sound operation of banks and helps management to safeguard bank's resources and interests. Since improving performance of internal control system requires recognizing its current status, in this study, an attempt has been made to evaluate the current status of establishment of internal control system in Iranian banks. For this purpose, through the designed questionnaire, experts have been asked to evaluate the current status of effective indicators in establishing internal control system of banks, taking into account the importance of these indicators. Received answers were analyzed using fuzzy delphi method, fuzzy gap analysis, importance-performance analysis and paired sample test. According to experts, the current status of all effective indicators in the establishment of the internal control system of banks was assessed as unfavorable. Findings from fuzzy gap analysis also indicate that except for 3 indicators, there is a significant gap between the current status (what is) and the desired status (what should be) of indicators. Also, according to the findings of importance-performance analysis, out of 119 indicators studied, 113 indicators do not have acceptable performance despite their high importance. In addition, based on the results of the paired sample test, it can be concluded that there is a significant gap between current status and desired status of effective indicators in establishing the five dimensions of the internal control system of banks: control environment, risk assessment, control activities, information and communication and monitoring activities.https://qjma.atu.ac.ir/article_14271_95196bdf387595a428db6f3a4317b818.pdfinternal control systemfuzzy delphiimportance-performance analysisfuzzy gap analysis |
| spellingShingle | Seyyed Morteza Mortazavi Javad Shekarkhah Jafar Babajani Status of Establishment of Internal Control System in Iranian Banks مطالعات تجربی حسابداری مالی internal control system fuzzy delphi importance-performance analysis fuzzy gap analysis |
| title | Status of Establishment of Internal Control System in Iranian Banks |
| title_full | Status of Establishment of Internal Control System in Iranian Banks |
| title_fullStr | Status of Establishment of Internal Control System in Iranian Banks |
| title_full_unstemmed | Status of Establishment of Internal Control System in Iranian Banks |
| title_short | Status of Establishment of Internal Control System in Iranian Banks |
| title_sort | status of establishment of internal control system in iranian banks |
| topic | internal control system fuzzy delphi importance-performance analysis fuzzy gap analysis |
| url | https://qjma.atu.ac.ir/article_14271_95196bdf387595a428db6f3a4317b818.pdf |
| work_keys_str_mv | AT seyyedmortezamortazavi statusofestablishmentofinternalcontrolsysteminiranianbanks AT javadshekarkhah statusofestablishmentofinternalcontrolsysteminiranianbanks AT jafarbabajani statusofestablishmentofinternalcontrolsysteminiranianbanks |