THE ROLE OF INTERNAL AUDITING IN AVOIDING BANKING BANKRUPTCY
Keywords:
Internal Audit, Efficiency, Commitment Of The Internal Auditor, Risk Of BankruptcyAbstract
This paper explores how internal auditing can help banks to avoid the risk of bankruptcy. It focuses on the effectiveness of internal auditors and their role in evaluating risk management within banks. The paper examines the tools they use and the recommendations they provide to help banks make informed decisions to minimize bankruptcy risk.
To gather data, a questionnaire was created with two main sections: the first assesses the efficiency and commitment of internal auditors, while the second evaluates how internal auditing contributes to identifying bankruptcy risks. This questionnaire was distributed to bank institutions, internal auditors, and university professors in the relevant field, resulting in a total sample of 37 participants.
The researcher employed a descriptive analytical approach to test the hypotheses and analyze the results. The findings, analyzed using the Statistics Package for Social Sciences, indicate that internal auditing plays a statistically significant role in reducing the risk of banking bankruptcy.
