The impact of internal control on employees' performance in small and medium-sized enterprises: The moderating role of accounting information systems (case study: Iraq)

Internal control is a critical strategy employed by organizations to enhance efficiency and operational effec-tiveness. Accounting information systems (AIS) also serve as valuable tools for acquiring necessary infor-mation to evaluate the performance of both managers and employees. This study examines the impact of internal control on employees' performance in small and medium-sized enterprises (SMEs) in Iraq, with a particular focus on the moderating role of accounting information systems (AIS). Questionnaires were dis-tributed among SMEs in Iraq, and data from 198 responses were analyzed using structural equation model-ing (SEM). The findings indicate that internal control has a positive and significant influence on employees' performance in Iraqi SMEs. Furthermore, the utilization of information systems contributes to improved employee performance. However, the study did not find evidence of AIS moderating the relationship be-tween internal control and employees' performance. Based on these findings, it can be concluded that in the economic context of Iraq, particularly within SMEs, internal control plays a crucial role in enhancing effi-ciency and improving employees' performance. Additionally, information systems have the potential to make a substantial impact in this domain. Nevertheless, it is imperative for these systems to be regularly updated and upgraded to effectively influence all departments and components within an organization. This research contributes to the understanding of internal control and information systems in SMEs in Iraq, which can aid similar organizations in developing economies.