The Impact of information technology governance on mitigating financial statement fraud in Banks – A COBOT 2019 framework )A Field Study in Yemeni Banks)

Abstract

This study aimed to determine the impact of Information Technology (IT) Governance on mitigating financial statement fraud within Yemeni banks, specifically utilizing the COBIT 2019 framework. The research focused on the five key dimensions of IT governance: Plan and Organize, Acquisition and Implement, Delivery and Support, Direct and Monitor, and Evaluate, examining the individual effect of each on reducing financial statement fraud.

A descriptive analytical approach was employed, and a field study was conducted using a questionnaire as the primary data collection tool. The study population included employees from 16 Yemeni banks: five Islamic banks, four government and mixed banks, five private commercial banks, and two microfinance banks. Additionally, specialized staff from the Central Bank of Yemen and external auditors of Yemeni banks were included. The study's sample comprised 154 specialists from various departments, including senior management, finance, risk management and compliance, and internal audit, alongside the specialists from the Central Bank of Yemen and external auditors.Data analysis was performed using the Statistical Package for the Social Sciences (SPSS). The key findings revealed a strong positive impact of IT governance, as represented by the COBIT 2019 framework, on reducing financial statement fraud in Yemeni banks. Furthermore, the study confirmed that all five dimensions of IT governance (Plan and Organize, Acquisition and Implement, Delivery and Support, Direct and Monitor, and Evaluate) significantly contribute to financial statement fraud reduction, though their degrees of impact varied.