Impact of performance audits on the rationalization of credit institutions‘ decisions

Al-Saadi Mohanad RaheemSalim

the quality of decisions made by credit organizations allows such organizations to adapt to opportunities and threats coming from outside, to maintain a balance of private and public interests while protecting the rights of depositors and creditors, as well as to influence risk-taking and compliance with mandatory requirements and regulations by the credit organization. The risks taken by credit institutions are the main determinants of the decision-making process of such organizations. In the article, the author examines the relationship between decision-making and the results of an audit of the effectiveness of certain types of risk and concludes that the most effective tool for analyzing and accounting for risks and optimal responses of credit institutions to changing market conditions is an efficiency audit, since an efficiency audit allows evaluating the structure of assets and liabilities taking into account the totality of actual data provided by relevant information, as well as conduct comprehensive monitoring of the external and internal environment in order to effectively use the opportunities that open up.

Keywords:performance audit, decision-making, credit institutions, leverage, balance sheet management, equity adequacy.