Authors : Mohammed Zamil Flayyih and Salim Awad Hadi Alzabari
Abstract: There have been inconsistencies in the relationship between quality internal audit and manipulation of profits in Iraqi companies from the previous studies. Therefore, the objectives of this study are: to make clarification on the necessary practices for manipulation of profits and to increase the internal audit quality work of various departments in Iraqi public companies. Data and information were gathered from the financial statements of the company, the minutes from several board meetings held, research reports and the internal audit reports for 2012. The study found that the company’s internal audit departments do not depend on research quality on the implementation of its work due to lack of critical indicators such as risk management and control, objectives and powers independence and objectivity and audit programs. Thus, the study recommends a framework that should be adopted by the international standards of internal auditing in order to promote quality internal audit in every departments for a reduction in manipulation of profits perpetrated by the company’s management.
Mohammed Zamil Flayyih and Salim Awad Hadi Alzabari, 2019. The Role of Quality Internal Audit in Reducing the Manipulation of Profits of Public Companies: An Empirical Study of Oil Marketing Companies. Journal of Engineering and Applied Sciences, 14: 4651-4657.