THE IMPACT OF THE SARBANES - OXLEY ACT (SOX) ON INTERNAL CONTROL EFFICIENCY: AN EXPLORATORY STUDY OF THE OPINIONS OF A SAMPLE OF FIRST-CLASS AUDITORS

Abstract

The study aims to analyze the impact of implementing the Sarbanes-Oxley Act (SOX) requirements on improving the efficiency of internal control systems within the Iraqi business environment, from the perspective of first-class auditors working in banks and companies listed on the Iraq Stock Exchange. The research's significance stems from the scarcity of Arabic studies, particularly Iraqi ones, that have addressed this topic within a context different from the American environment in which the law originated. The study seeks to assess the suitability of this legislation's requirements to the realities of auditing and control in Iraq.

The study adopted a descriptive-analytical approach to construct its theoretical and applied frameworks. Data were analyzed using SPSS software through a questionnaire distributed to a sample of (96) auditors. The results demonstrated a significant positive correlation and impact between compliance with the Sarbanes-Oxley Act requirements and the internal control system. The study recommends that professional and regulatory bodies in Iraq adopt frameworks similar to the requirements of this law, taking into account the specificities of the local accounting environment, to enhance the efficiency and effectiveness of internal control systems.