The role of performance audits in improving the financial performance of commercial banks

Al-Saadi Mohanad RaheemSalim

financial performance indicators of commercial banks Express the effectiveness of their functioning and, therefore, become one of the mandatory objects subject to performance audit. The results of the performance audit allow commercial banks to analyze their financial performance indicators in terms of profitability, liquidity and viability and develop ways to improve them. The financial performance of a commercial Bank is expressed in the final financial results (profit, loss, income and expenses), which are directly and indirectly related to each other. In the article, the author shows how information about credit risk and return on assets of a commercial Bank obtained as a result of an efficiency audit can affect the improvement of financial performance indicators of commercial banks and concludes that data on financial performance indicators and factors affecting such indicators identified in the framework of an efficiency audit not only help the decision-making process in a commercial Bank, but also allow us to focus on factors related to risk minimization and profit maximization.

Keywords:performance audit, commercial banks, financial performance indicators, risk management system, credit risk, return on assets, return on equity.