The Role of Internal Audit in Evaluating the Financial Performance at Sudanese Banks

Abstract

The study aimed at; concluding whether there is statistical relationship between the internal audit and the evaluation of the financial performance, identifying whether there is a statistical relationship between the internal audit and the quality of the financial analysis, identifying the role of the internal audit on the control of preparing of planning budgets, and identifying the impact of internal audit on the control of the cash flow,The problem of the study was represented in, the misunderstanding of the internal audit role, limiting its role only in auditing the accounting, and neglecting its consultant role on evaluation of the financial performance.The study tested the following hypotheses: there is statistically significant relationship between the internal audit and the evaluation of the financial performance, there is statistically significant relationship between the internal audit and the quality of the financial analysis, the internal audit has a role on the control of preparation of the planning budgets, the internal audit has an impact on the control of cash flow.The study adopted the historical method to review the previous studies that related to issue of the research, the inductive method to determine the aspects of the research and formulate the hypotheses, the deductive method to test the hypotheses, and the analytical descriptive method for the case study. The study arrived at several findings the most important include: the internal audit helps in evaluation the financial performance efficiently and effectively, the internal audit increases the quality of the financial analysis, the internal audit performs an effective controlling role on the preparation of the planning budgets, the internal audit affects positively the cash flow.The study recommended to: the internal audit should be independent and its personnel should be qualified scientifically and practically, the internal audit should supervise the financial analysis process, consultancy should be taken from the internal audit when preparing the planning budgets, and finally the internal audit should control the cash inflows and cash outflows.