The Impact of Using an Internal Audit Manual on Audit Quality Using Structural Equation Modeling (SEM) An Exploratory Study of Some Iraqi Colleges

Abstract

Our study hopes to identify the effectiveness of making use of the Federal Court of Financial Supervision’s Internal Audit Manual in the process of internal audit through Structural Equation Modeling (SEM). Internal internal auditing is dubbed it one of the key elements of the internal control system which is referred to the protection of resources and providing accurate financial data.The manual is being generated on the basis of the integrated set of principles which constitute the fundamentals of internal audit and to complete the proper performance of audit services, best efficiency levels and effectiveness have to be achieved. As auditing quality serves the role of assuring the auditors' professional standards and satisfying financial statement users' needs, all parties can gain from it.    The results prove that there is indeed a high positive correlation and influence between the use of the manual and the level of quality in the internal audits with both positive and negative impact on the internal audit quality. The research highlighted the role of following the mandated manual to ensure efficient auditing occurrence. Consequently, the paper’s author made a suggestion to developing it manually conducting training courses for auditors, involving them in the process of writing the manual and saying that they should strictly conform to the internal audit standards