The Role of Internal Audit in Enhancing Internal Control and Financial Performance: An Applied Study on Yemeni Banks

Abstract

This study aims to explore the contribution of internal audit in improving the financial performance of Yemeni banks through its role in enhancing internal control over financial and operational processes. The research adopted an analytical approach and included the following sections: Introduction, theoretical framework of the study, research framework, hypothesis development, recommendations of auditors for improvement and effectiveness of internal control, applied study, results, and recommendations. The study results revealed that internal audit did not play a significant role in improving financial performance in Yemeni banks. This was due to the lack of adherence by top management to the recommendations of internal audit in improving financial and operational policies, procedures, and the development of internal control activities.