Impact of Accounting Information System on Financial Performance with the Moderating Role of Internal Control in Iraqi Industrial Companies: An Analytical Study

Abbas Jumaah Al-Waeli, Raadnaser Hanoon, Hayderaliageeb and Hayderzghairidan

This paper aims to study the effect of the accounting information system on financial performance with the role of internal control as the mediator. The information gathered from the (90) questionnaires were distributed among selected employees in (18) industrial companies. The results indicated a significant impact of Timeliness, Accuracy and Verifiability on financial performance. Whilst showed no significant effect on the Relevance of financial performance. Internal Control was shown to positively moderate between the relationship Relevance, Accuracy and financial performance. Whereas, the internal control system moderates no-showed an effect on the relationship between Verifiability, Timeliness and financial performance. In light of the findings, this study suggests the management to establish better strategies that can ensure the effectiveness and efficacy of internal control. The effectiveness of the accounting information system also improves the financial performance of companies. The study contributes to the field of knowledge by support to the relationship between accounting information system and financial performance using internal control as a mediator. The existing research gap in the context of industrial companies is filled by this study through the provision of a new theoretical approach and managerial foundation for future studies.

Volume 12 | Issue 8

Pages: 246-261

DOI: 10.5373/JARDCS/V12I8/20202471