An application on internal control operations and the components of the internal control function in the banking system

It is known that globalization, which becomes more evident in the light of economic and technological developments, significantly affects many sectors. One of these sectors has been banking. The control of funding sources, which have diversified and become more complex with the spread of globalization, which has both positive and negative effects, has become more important. Especially in the third quarter of the twentieth century, bankruptcies arising from insufficient internal control in the USA have been a stimulus for the banking sector to keep internal control more tight. In the report published in 1992 by COSO (Committee of Sponsoring Organizations of the Treadway), which was established with the joint action of five organizations at the point of controlling deficiencies and errors in financial reporting, three main subjects; The effectiveness and efficiency of institutions, reliability in the reporting system and compliance with laws and regulations are aimed. In addition to being based on similar foundations in the COSO report published in 2013, its scope was expanded. According to COSO, the internal control system consists of five main components: Control environment, risk assessment, control actions, information and communication and monitoring. It is possible to say that internal control takes place efficiently and effectively as a result of the active and harmonious action of these components. Scope of work; A survey was conducted to analyze the effect of COSO's internal control components on the efficiency in the banking sector. This questionnaire, which consists of 26 questions apart from demographic information, was answered by 144 samples sent with the snowball sampling method. In this study carried out with bank employees operating in Istanbul, comprehensive questions were asked in order to examine the effects of all five criteria of COSO on productivity separately. In line with the data obtained; It has been observed that all five internal control components work efficiently in banks operating in Istanbul.