Abstract:
The main objective of this paper is to examine the effect of internal control on financial performance taking into consideration the audit quality as a moderating variable, as well firm age and size as control variables. The independent variable contains the risk assessment, control activities, control environment, monitoring, and information and communication. These components are measured by the control environment quality index. Furthermore, the dependent variable which is the financial performance is measured by Return on Assets (ROA), which is net profit divided by total assets. Moreover, the moderating variable is measured by a Dummy variable, while firm size and age are both measured by Natural Logarithm. A sample of 31 companies that are non-financial institutions listed in the Egyptian Stock Market from 2017 – 2021. The statistical techniques used in testing the hypotheses are descriptive analysis, regression analysis, and Pearson’s correlation. The results of the study indicate that there is a positive significant relation between internal control and financial performance.
