The Leadership and Communication Component within the Internal Auditors’ Professional Competency Framework and Its Impact on Financial Reporting Quality: An Analytical Study in the Iraqi Stock

Abstract

This study investigates the influence of the leadership and communication component—recognized as a cornerstone in the internal auditors’ professional competency framework—on improving the quality of financial reporting among Iraqi companies listed on the stock exchange. The research aims to address a practical gap in accounting literature by empirically testing a set of hypotheses that examine how internal auditors’ leadership and communication capabilities affect the accuracy, transparency, and reliability of financial disclosures. A combination of advanced statistical methods was employed to analyse the correlation and causal relationships between these competencies and reporting quality indicators. Results demonstrated a statistically significant positive association, indicating that proficient leadership and effective communication within audit teams substantially enhance the integrity of financial reports. Based on these findings, the study recommends implementing structured leadership and communication development initiatives tailored to strengthen the internal audit function. Such programs can contribute to higher reporting standards, better regulatory compliance, and increased stakeholder confidence.