Role External Auditing and Corporate Governance Practices in Combating Corruption in The Financial Sector

An Exploratory Study of Islamic Banks in Kurdistan

توێژەران

  • Bayar Ali Ismael accounting Dep., College of business and administration, Erbil polytechnic University, Arbil City, Kurdistan Region – Iraq
  • Azhy Akram Aziz media Dep., College of business and administration, Erbil polytechnic University, Arbil City, Kurdistan Region – Iraq
  • Bawan Yassin sabir department of accounting, Kurdistan technical institute, sulaymaniya ,KRG,Iraq
  • Raqeeb Abdulla Omar business management Dep., College of Administration & Economics, Lebanese French university, Erbil, Kurdistan Region – Iraq
  • Karkhi khalid business management Dep., College of Administration & Economics, Lebanese French university, Erbil, Kurdistan Region – Iraq
  • Barzan Omar Ali Accounting Dep. Aynda Institute, Erbil, KRG, Iraq
  • Bayar Gardi Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil, Kurdistan Region, Iraq

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https://doi.org/10.25212/lfu.qzj.8.5.53

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Corporate governance practices, corrupt practices, external auditing, moderating effects

پوختە

The main objective of the study is to the role of external auditing initiatives and corporate governance practices in dealing with incidences of corruption observed in the financial sector. A structural equation model was estimated using data collected from 200 Islamic bank managers, auditors, accountants and other employees in Erbil, Kurdistan using Smart PLS. The findings revealed that auditing financial statements acts as a disciplining device for curbing bribery in environments that encourage corruption. It was concluded that external auditing fosters acceptable ethical conduct essential for fostering good corporate governance practices in financial institutions. The study interestingly concludes that the effectiveness of corporate governance practices to warrant a reduction in corrupt practices is conceivable in an environment with solid external auditing initiatives as evidenced by the moderating analysis results.

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سەرچاوەکان

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2024-01-09

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