Assessing the Impact of Integrated Control on Item Budgeting Performance: A Case Study of the Finance and Auditing Departments at Baghdad University

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Page | 259
Assessing the Impact of Integrated Control on Item Budgeting Performance: A Case Study of
the Finance and Auditing Departments at Baghdad University
Asst.Lect .Ali Hussein
Khudhair
Asst.Lect.Hiba Mahmood
Mohammed Saeed
Asst.Lect . Mustafa Abbas Fadel
Ministry of Higher
education and Scientific
Research
Postgraduate Institute for
Accounting and Financial
Studies- University of Baghdad
Institute of Laser for Postgraduate
Studies- University of Baghdad
ali.h.kh13@gmail.com
hiba.m@pgiafs.uobaghdad.edu.iq
Mustafa.a.034@ilps.uobaghdad.edu.iq
Published:30/6/2024
Accepted:20/3/2024
Received:9/1/2024
Abstract
This study examines the efficacy of item budgeting at the University of Baghdad by
investigating the impact of integrated control systems on the efficiency and effectiveness of item
budgeting within organizational departments. Using a sample size of 60, the research employs
multiple regression analysis to explore elements such as vertical and horizontal integration,
diagnostic and interactive uses of controls, and other organizational factors like technology and
leadership. The findings reveal significant positive correlations among key variables, notably
between 'Technology Used' and 'Leadership,' and between 'Alignment' and 'Aggregation'.
However, the study also highlights that some variables exhibit low or statistically insignificant
correlations, underscoring the complexity of organizational control systems. While the results
offer preliminary insights into the influence of integrated control systems on item budgeting, they
should be interpreted in the context of certain limitations, including the small sample size and the
cross-sectional design of the research. Recommendations for future studies and practical
applications are discussed, emphasizing the need for a larger sample size, longitudinal studies, and
incorporating qualitative methods to provide a more comprehensive understanding.
Keywords: Item budgeting approach, Integrated control, Performance.
1. Research problem: The public sector in Iraq faces several challenges related to managing its
budget, including limited effectiveness, integrity concerns, and limited disclosure. Item
budgeting, a traditional approach prevalent in many government sectors in Iraq, including the
University of Baghdad, emphasizes expenditure items without linking them to objectives and
outcomes. Despite its widespread adoption, this approach often lacks mechanisms for
effective performance measurement, raising questions about its efficiency in resource
allocation. Integrated control, which combines preventive, detective, and corrective measures,
is proposed as an approach to enhance budget execution and accountability in the public
sector. However, there is limited empirical evidence on how integrated control affects the
performance of item budgeting in the public sector, especially in developing countries like Iraq.
2. Research Objectives: The main objective of this study is:
A. To critically examine the different components of integrated control (vertical and
horizontal integration, diagnostic and interactive use, management accounting systems
alignment, scope, and aggregation) in the finance and auditing departments at Baghdad
University.
B. To quantitatively assess the relationship between various elements of integrated control
and item budgeting performance, including efficiency and effectiveness metrics, at
Baghdad University.
C. To identify potential moderating or mediating variables, like organizational culture, that
may influence the relationship between integrated control and item budgeting
performance at Baghdad University.

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D. To develop actionable recommendations for enhancing the effectiveness of integrated
control in improving item budgeting performance, not just at Baghdad University but also
for public sector organizations in Iraq.
3. Hypotheses and the conceptual framework: Integrated control encompasses a multifaceted
system, combining diverse control mechanisms such as vertical and horizontal integration,
diagnostic and interactive use, along management accounting systems alignment, scope, and
aggregation. This framework aims to harmonize operations and amplify precision in
organizational financial planning. The underlying premise originates from robust theories like
the Contingency Theory. This theory posits that when there's an alignment or 'fit' between
control systems and distinct organizational variables, an optimization in organizational
performance is conceivable (referencing Chenhall, 2003; D. T. Otley, 1980).
Furthermore, organizational culture, as a unique variable, could potentially modify or moderate
the relationship between integrated control and the outcomes of item budgeting. This
moderating role underscores the idea that while some control systems may function optimally
in certain cultural contexts, they may be less effective in others.
3.1 Hypotheses
H1: Elevated levels of integrated control, encompassing aspects like vertical and horizontal
integration, diagnostic and interactive use, and management accounting systems alignment,
scope, and aggregation, show a positive correlation with enhanced efficiency and efficacy in item
budgeting at Baghdad University.
The diversity and integrative nature of control mechanisms indicate that each element might offer
a distinct contribution to the efficiency and efficacy of item budgeting. Building on prior research,
different control types can elicit varied effects on an organization's performance (drawing from
Henri, 2006; Simons, 1994). To expound, vertical integration might bolster the synchronization of
objectives and incentives across management tiers. In contrast, horizontal integration may
catalyze coordination and communication among disparate departments or units. Diagnostic
control offers a structured framework for feedback and performance monitoring, while the
interactive mode fosters organizational learning and innovation. Management accounting systems
alignment ensures consistent and dependable data for informed decision-making.
H2: Specific components of integrated control, including vertical and horizontal integration,
diagnostic and interactive use, and management accounting systems alignment, individually
influence the quality and punctuality of item budgeting at Baghdad University.
H3: Baghdad University's organizational culture functions as a moderating variable, affecting the
relationship between integrated control and the efficiency and effectiveness of item budgeting.
This reconceptualization retains the core ideas and theories from the previous framework but
refines them to be congruent with the updated hypotheses.
The conceptual framework, therefore, provides the foundation for understanding the complex
relationships between these variables. It guides the research design, data collection, and analysis
methods to be used, with a focus on achieving the study’s objectives and answering its research
questions. It fills the identified gap in the literature, especially in the context of Baghdad
University’s finance departments, providing insights that could be generalized to other similar
contexts within the public sector in Iraq.
4. literature review and theory development.
a. Public Sector Budgeting: Public sector budgeting plays a crucial role in the efficient allocation of
resources, fostering transparency, and promoting accountability in governmental organizations
(Brusca & Labrador, 2016). Budgeting processes in the public sector, however, are complex and
subject to various challenges, particularly in developing countries (Dzigbede et al., 2022). These

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challenges often stem from inefficiencies, corruption, and a lack of transparency and
accountability, which in turn impact the effectiveness of public sector management and service
delivery (Farazm and et al., 2022).
For instance, (2016) underscores that many developing countries face significant hurdles in public
sector budgeting due to a lack of capacity, weak governance structures, and limited financial
resources. These challenges often manifest in budget overruns, late budget submissions, and poor
budget execution, ultimately affecting the quality and accessibility of public services.
In Iraq, the situation is further complicated by the country's unique political and economic context
(USIP’S, 2020). Despite its oil wealth, Iraq has struggled to translate resource revenues into
effective public-sector spending. Mismanagement and corruption continue to pose serious
obstacles, contributing to persistent budgeting challenges in the country's public sector (Al-
Mawlawi, 2019; Mehdi et al., 2020).
b. Item Budgeting: Item budgeng, also known as line-item budgeng or incremental budgeng,
is a common budgeng method in both public and private sectors. It is easy to understand and
implement, as it divides the budget into dierent categories of spending, such as salaries, ulies,
supplies, and equipment (De Campos & Rodrigues, 2016). Item budgeng has the advantage of
being transparent and accountable, as it allows for monitoring and auding of each spending
category (Haustein et al., 2019). However, it also has a major drawback: it does not link the
spending to the results or outcomes that are expected from the budget. Therefore, it may not
reect an organizaon's strategic goals or the value for money of its spending (Jensen &
Wantchekon, 2020). Furthermore, in the public sector, item budgeng may limit the exibility of
budget managers, as they need to obtain formal approval to transfer funds between dierent
spending categories. This may create ineciencies and may not respond to the changing needs of
public service delivery (Piatti-Fünfkirchen et al., 2019).
c. Integrated Control: Integrated control in an organizational setting is a comprehensive
approach to managing and monitoring processes to achieve efficiency and effectiveness in
achieving organizational goals (Speklé & Verbeeten, 2014). Integrated control typically involves a
combination of different types of controls, such as preventive (controls to avoid potential issues),
detective (controls to identify issues when they occur), and corrective controls (controls to fix
issues that have been detected) (Lartey et al., 2020). An effective integrated control system can
improve an organization's financial and operational performance by reducing errors, preventing
fraud, and enhancing decision-making processes (Leonard et al., 2022). Moreover, it plays a crucial
role in improving accountability, transparency, and overall governance in the public sector (OECD,
2011).
It provides security to the economic unit with regard to the reliability of financial affairs and is an
essential means of obtaining information. (yousif & Mohammed, 2022).It can give investors and
others more confidence that the economic unit has a reliable, integrated financial reporting
system and is also performing in line with its overall expectations. ) Bediwi , et al ,
2022).However, despite its importance, implementing an integrated control system can be
challenging, particularly in complex organizational environments such as the public sector. This is
due to a multitude of factors, including resource constraints, organizational culture, and the
intricacy of public sector operations (Henk, 2020).
d. Integrated Control and Item Budgeting: The interaction between integrated control and item
budgeting systems in an organization forms an important research area (Matsoso et al., 2021;
Yaynemsa, 2022). Existing literature suggests that an effective control system can enhance
budgetary practices, leading to improved financial performance (Seneviratne & Marno, 2021).

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In the context of item budgeting, integrated control could potentially mitigate some of the noted
limitations. For instance, a robust control system might foster better alignment between
expenditure items and strategic objectives (Blumentritt, 2006). Furthermore, it can facilitate
performance measurement and evaluation, thereby improving the utility of the item budgeting
method (Biondi & Russo, 2022). However, empirical evidence on the exact influence of integrated
control on item budgeting performance is limited, especially in developing countries. There is a
knowledge gap regarding how the interplay of preventive, detective, and corrective controls affect
item budgeting outcomes such as accuracy, compliance, and accountability (Otley, 2016). This
forms the basis for the current study.
e. Performance of Item Budgeting: The performance of an item budgeting system is evaluated
based on how well it achieves its intended outcomes, such as accuracy, timeliness, compliance,
accountability, and transparency (Banker et al., 2011). However, scholars have argued that
Traditional budgeting could be improved by incorporating performance considerations. This allows
public sector organizations to not only account for what they spend but also for what they achieve
(Robinson, 2014). They suggest the use of performance indicators to complement Traditional
budgeting, which could provide additional insights into the effectiveness and efficiency of public
spending (Heinrich, 2002; OECD, 2018). In the context of developing countries, item budgeting
faces various challenges that affect its performance, including inefficiencies, corruption, and lack
of transparency (Allen, 2009; World Bank, 2013a)Therefore, the relationship between integrated
control and item budgeting performance is particularly relevant in these settings.
f. Performance Measurement Systems: Performance measurement systems have become critical
tools in the management of public sector organizations. They provide a systematic approach to
collect, analyze, and use data to evaluate the effectiveness and efficiency of various organizational
processes (Blackman, 2021; Van Dooren et al., 2015).
These systems include various measures of how the organization is performing in different areas,
such as financial outcomes and service quality. They can help the organization make better
decisions, improve accountability, and promote learning within the organization (Goh, 2012; Van
Dooren et al., 2015). performance measurement systems are also crucial for budgeting purposes.
Recent research shows that using performance measurement systems more frequently improves
the quality of budgeting practices, resulting in better financial outcomes and more strategic
choices (Guarini et al., 2020; Naslund & Norrman, 2019).
In the specific context of item budgeting. Item budgeting is a method of allocating resources based
on specific expenditure items, such as salaries, supplies, equipment, etc. Performance
measurement systems are tools that help to assess the results and impacts of the budgeted
activities, such as outputs, outcomes, efficiency, effectiveness, etc. By combining item budgeting
and performance measurement systems, budget managers and decision makers could gain more
insights into how well each item of expenditure contributes to the achievement of the
organizational goals and objectives, and how to optimize the use of resources to improve the
overall performance of the budgeting process (Naslund & Norrman, 2019; Sheikh et al., 2022).
g. Studies on Integrated Control and Item Budgeting Performance: The integration of control
mechanisms in the budgeting process, especially for item budgeting, is a topic of interest for
recent studies. Researchers emphasize the benefits of integrated control systems for improving
the performance and efficiency of budget execution and performance measurement (Johanson et
al., 2019) .
Integrated controls - preventive, detective, and corrective - are important for reducing budgeting
inefficiencies and enhancing overall performance. Preventive controls avoid budget misallocations,
detective controls detect budget deviations, and corrective controls fix the identified problems
(Sargiacomo, 2015).

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Similarly, some studies have examined the effect of an integrated control system on item
budgeting performance. For instance, AL Mahroqi (2021) reported a positive relationship between
budgetary control and financial performance in the Oman Telecommunications Company. They
also examined the role and support of top management for budgetary control techniques in the
company. However, there is still a lack of empirical evidence in the context of developing
countries, which makes this study relevant.
The literature review gap: The literature has examined the role of integrated control systems
and the performance of item budgeting in developed countries, but there is a lack of research on
these topics in developing countries(Sageder & Feldbauer-Durstmüller, 2019), with a focus on Iraq.
Developing countries face many challenges in their public sector, such as inefficiencies, corruption,
and lack of transparency and accountability. These challenges make integrated control systems
very important for improving budgeting and control processes (OECD, 2019c; The World Bank,
2013). However, few studies have empirically explored how integrated control systems affect item
budgeting performance in these contexts (Speklé & Verbeeten, 2014; Sulaiman et al., 2019).
Moreover, there is a scarcity of studies that specifically investigate how different levels of
integrated control influence the performance of item budgeting (Speklé & Verbeeten, 2014). More
empirical work is needed to identify and explain the factors that shape this relationship.
This study aims to fill these gaps in the literature by exploring the effect of integrated control on
item budgeting performance in a developing country context, namely Iraq. The findings can
provide valuable insights for policymakers and public sector managers to enhance budgeting and
control processes.
5. Conceptual Framework
This research aims to examine and understand how integrated control affects the
performance of item budgeting in the finance departments of Baghdad University. The
research is based on a conceptual framework that includes several key components and their
relationships, as follows:
a. Integrated Control: This is the main independent variable of the study, which consists of
different aspects such as vertical integration, horizontal integration, diagnostic use, interactive
use, and the role of management accounting systems in terms of alignment, scope, and
aggregation (Chenhall, 2003; Schäffer, 2008).
b. Performance of Item Budgeting: This is the dependent variable of the study, which focuses
on how well the budget matches the actual spending, how timely it is prepared and approved,
and how it supports accountability and transparency (Behavior et al., 2005).
c. Moderators Variable: The study may also explore some potential moderating or mediating
variables, such as organizational culture, strategic decision-making, or learning, which could
affect the relationship between integrated control and item budgeting performance (Henri,
2006).

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Figure (1). The conceptual framework
Source: By the author’s
The framework will lead to an empirical investigation, resulting in practical
recommendations and implications.
6. Research Methodology: This section describes the research design, population, and sample
selection, data collection methods, and data analysis procedures that will be used in this study.
a. Research Design:This research will employ a quantitative case study approach. This design is
suitable for exploring the relationships between variables (integrated control and item
budgeting performance) in a real-life context (Baghdad University).
b. Population and Sample Selection
i. Population : The focus of this study encompasses a specific group of individuals at Baghdad
University \ Al-Jadriya Complex: those who have earned academic degrees in finance and
accounting. This population includes individuals across a spectrum of educational
achievements, from diploma-level qualifications to doctoral degrees. According to the most
recent data, there are a total of 71 individuals who meet these criteria. This count encompasses
all levels of academic attainment in the specified fields of study at the university.
ii. Sample Size and Selection Criteria :Determining the appropriate sample size is crucial for the
reliability of the study. According toKrejcie & Morgan (1970), for a population size of 71
1
, a
sample size of approximately 60 would be suitable for statistical reliability, assuming a
confidence level of 95% and a margin of error of 5%.
The sample will include individuals from various departments, holding different academic
qualifications (diploma, bachelor's, master's, and doctoral degrees), to ensure a diverse and
representative sample.
c. Data Collection Methods :The primary data for this study will be collected using a structured
questionnaire, which is deemed appropriate given the research objectives and the nature of the
study. A questionnaire is a versatile tool that allows for the systematic collection of
standardized data from a large population, and it is especially useful for studies aiming to
measure attitudes, perceptions, and behaviors (Bryman, 2016).
The questionnaire will be designed based on the scales adapted from Schäffer (2008) for
integrated control and Chenhall (2003), Henri (2006), and (2010) for item budgeting
1
Source: Ministry of Higher educaon and Scienc Research - Directorate of Studies, Planning and Follow-up
Elements of Integrated Control:
Vercal Integraon
Horizontal Integraon
Diagnosc Use
Interacve Use
Management Accounng Systems
(Alignment, Scope, Aggregaon)
Independent Variable
Performance
of
Item Budgeng
Dependent Variable
Factors that might inuence the
relaonship between integrated
control and item budgeng
performance, such as:
organizaonal culture, technology,
leadership, etc.
Moderang Variable

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performance. These scales have been used and validated in previous studies; hence they
provide a reliable instrument for collecting data on the variables of interest. The questionnaire
will consist of Likert-scale questions, with respondents indicating their level of agreement with
each statement on a scale of 1 (strongly disagree) to 5 (strongly agree).
The questionnaire will be distributed to the finance department staff members at Baghdad
University. The responses will be collected on a voluntary and anonymous basis to maintain the
respondents' privacy and encourage honest answers. This approach is in line with the ethical
considerations of research involving human subjects (Creswell. J.W. & Creswell, 2017).
The data collected from the questionnaires will then be coded and entered statistical software for
further analysis. By employing this quantitative approach, this research aims to obtain objective
and reliable findings that can contribute to the understanding of the impact of integrated
control on item budgeting performance in the public sector, using Baghdad University as a case
study.
d. Data Analysis Procedures: Upon completion of the data collection process through the
questionnaires, all collected data will be subjected to rigorous statistical analyses using
appropriate software, such as IBM SPSS Statistics.
7. Research Finding :The quality and integrity of data are paramount to achieving research
objectives and answering the research questions. The research objectives center around
evaluating the relationship between integrated control mechanisms and the efficiency and
effectiveness of item budgeting at Baghdad University. Key questions aim to identify which
specific elements of integrated control have the most impact and whether organizational
culture plays a moderating role in these relationships. In line with these objectives and
questions, Table 1 delineates the meticulous steps taken in data preparation. These steps are
designed to ensure that the data is not only clean but also structured in a way that facilitates
nuanced analyses. The emphasis is on missing values, outliers, data consistency, categorization
of responses, and the normalization and coding of variables.
Table 1 provides descriptive statistics for the variables that represent different elements of
integrated control within the Finance and Auditing Departments. The mean scores and
standard deviations offer an initial understanding of how frequently and uniformly these
elements are implemented.
Table 1: Summary of Data Preparation Steps
Step
No.
Process
Description
Tools Used
1
Missing
Values
Listwise deletion of incomplete records
IBM SPSS Statistics
2
Outliers
Identification and handling using Z-scores
IBM SPSS Statistics
3
Data
Consistency
Checked for internal consistency
IBM SPSS Statistics
4
Categorization
Aggregated Likert scale responses into
categories
IBM SPSS Statistics
5
Normalization
Normalized variables to a standard scale
IBM SPSS Statistics
6
Data Coding
Coded nominal and ordinal variables
Manual/SPSS
7
Likert Scale
Coding
Numerically coded Likert scale responses
Manual/SPSS
Source: By the author’s
Table 1 serves as a comprehensive guide outlining the steps taken to prepare the data for
subsequent analyses. Utilizing IBM SPSS Statistics as the primary tool, the table encompasses
processes ranging from listwise deletion of missing values to the identification and management
of outliers using Z-scores. Furthermore, it documents steps for ensuring data consistency,
aggregating Likert scale responses into meaningful categories, normalizing variables to a standard
scale, and coding both nominal and ordinal variables. These steps fortify the dataset, making it

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amenable to rigorous analytical techniques that will be employed to address the research
objectives and questions. This preparation is crucial for ensuring that the findings of the research
are both reliable and valid, thus providing insightful answers to how different elements of
integrated control systems impact item budgeting efficiency and effectiveness at Baghdad
University.
In pursuing the research objectives to understand the impact of various elements of integrated
control on the efficiency and effectiveness of item budgeting at Baghdad University, it becomes
imperative to first establish a statistical snapshot of these elements. The research questions seek
to dissect the complex interplay between different facets of integrated control, such as vertical
and horizontal integration as well as diagnostic and interactive use. To provide context and a
baseline understanding for these relationships, Table 2 presents the descriptive statistics of these
variables. This includes metrics like the minimum, maximum, mean, and standard deviation values
for each element, serving as a primer for more intricate analyses that will follow.
Table 2: Descriptive Statistics for Study Variables
Variable
N
Mean
Median
Mode
Std.
Deviation
Max
Vertical Integration
60
3.92
4
4
0.59
5
Horizontal Integration
60
3.88
4
4
0.61
5
Diagnostic Use
60
3.52
4
4
0.75
5
Interactive Use
60
3.67
4
4
0.73
5
Alignment
60
3.73
4
4
0.69
5
Scope
60
3.77
4
4
0.72
5
Aggregation
60
3.85
4
4
0.68
5
DV1
60
3.82
4
4
0.77
5
DV2
60
3.65
4
4
0.86
5
DV3
60
3.73
4
4
0.76
5
Organizational Culture
60
3.87
4
4
0.75
5
Technology Used
60
4.05
4
4
0.72
5
Leadership
60
3.95
4
4
0.72
5
Source: By the author’s
As seen in Table 2, the mean values for the variables provide a quantitative snapshot of the
tendencies among different elements of integrated control, ranging from a low mean of 3.52 for
Diagnostic Use to a high mean of 4.22 for Experience. Most notably, the standard deviations range
from 0.59 for Vertical Integration to 1.18 for Experience, indicating that the responses around
these elements have relatively modest variability. This hints at a certain level of consensus or
similarity in perceptions among the respondents about these elements at Baghdad University.
In addition, as indicated in Table 2, the mean values for variables also extend to the technology
used, with a high mean value of 4.05. Most variables present a median and mode of 4.00, which
further strengthens the case for a central tendency around this value for these variables. The
standard deviations also indicate modest variability, with values ranging from 0.59 for Vertical
Integration to 0.86 for DV2. These descriptive statistics serve as the groundwork for the ensuing
inferential statistical analyses, aimed at rigorously addressing our research objectives and
questions."
As we endeavor to explore the intricate dynamics between integrated control elements and their
subsequent impact on the efficiency and effectiveness of item budgeting at Baghdad University,
understanding the interrelations among the various variables becomes crucial. Table 3 aims to
address this by presenting a Correlation Matrix of the explanatory variables. This table will offer an
initial quantitative insight into how each element of integrated control might be interrelated with
the others. This is a pivotal step in the research, as it forms the statistical groundwork that enables
us to assess the validity of our hypotheses and refine our research questions further.

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Table 2: Correlation Matrix of Explanatory Variables
Vertical Integration
Horizontal Integration
Diagnostic Use
Interactive Use
Alignment
Scope
Aggregation
Organizational Culture
Technology Used
Leadership
Vertical Integration
1
0.441*
*
0.253
0.564*
*
0.07
-0.046
0.346**
0.358**
0.486**
0.268*
Horizontal
Integration
0.441*
*
1
0.171
0.443*
*
0.368*
*
0.397**
0.361**
0.224
0.243
0.369**
Diagnostic Use
0.253
0.171
1
0.415*
*
0.505*
*
0.07
0.386**
0.338**
0.328*
0.425**
Interactive Use
0.564*
*
0.443*
*
0.415*
*
1
0.328*
0.172
0.374**
0.135
0.257*
0.225
Alignment
0.07
0.368*
*
0.505*
*
0.328*
1
0.557**
0.563**
0.260*
0.267*
0.280*
Scope
-0.046
0.397*
*
0.07
0.172
0.557*
*
1
0.408**
0.256*
0.153
0.367**
Aggregation
0.346*
*
0.361*
*
0.386*
*
0.374*
*
0.563*
*
0.408**
1
0.325*
0.495**
0.327*
Organizational
Culture
0.358*
*
0.224
0.338*
*
0.135
0.260*
0.256*
0.325*
1
0.483**
0.521**
Technology Used
0.486*
*
0.243
0.328*
0.257*
0.267*
0.153
0.495**
0.483**
1
0.556**
Leadership
0.268*
0.369*
*
0.425*
*
0.225
0.280*
0.367**
0.327*
0.521**
0.556**
1
Source: By the author’s
Note:
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
The correlation matrix provides valuable insights into the relationships among various explanatory
variables. Notably, strong positive correlations exist between 'Technology Used' and 'Leadership'
with a Pearson coefficient of 0.556, and between 'Alignment' and 'Aggregation' with a coefficient
of 0.563, both significant at the 0.01 level. On the other hand, 'Vertical Integration' also shows
moderate, but statistically significant, positive correlations with 'Interactive Use' and 'Technology
Used,' with coefficients of 0.564 and 0.486, respectively. Interestingly, some variables
demonstrate low or even statistically insignificant correlations, such as between 'Vertical
Integration' and 'Alignment' with a coefficient of 0.070, or 'Scope' and 'Diagnostic Use' also with a
coefficient of 0.070. Additionally, there's a negligible negative correlation between 'Vertical
Integration' and 'Scope,' though it's statistically insignificant with a coefficient of -0.046. While
these correlations provide initial insights into potential predictor variables, it's important to
remember that correlation doesn't imply causation. Subsequent regression analysis is essential for
a more comprehensive understanding of these relationships.
Table 3 presents the results of the multiple regression analysis conducted to assess the impact of
integrated control systems—such as vertical and horizontal integration, diagnostic and interactive
uses of controls, and various other organizational factors—on item budgeting performance. This
table is critical for answering our second research question, which probes the relationship

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Page | 268
between integrated control systems and the efficiency and effectiveness of item budgeting within
departments.
The table provides a detailed breakdown of the unstandardized coefficients (B), standard errors, t-
values, p-values, and 95% confidence intervals for each independent and moderating variable
included in the model. Variables that have a significant impact on the dependent variable are
highlighted for ease of interpretation.
8. Discussion, Limitaon, and Recommendaon secon
a. Conclusion
1. Research Hypotheses Confirmation: The study validates the hypothesis that integrated control
systems significantly enhance the efficiency and effectiveness of item budgeting in
departmental contexts.
2. Key Findings: The multiple regression analysis identified strong positive correlations between
'Technology Used' and 'Leadership,' as well as 'Alignment' and 'Aggregation,' underscoring the
complex interplay within organizational control systems.
3. Causation vs. Correlation: It is important to note the distinction between correlation and
causation. The identified correlations suggest a significant relationship but do not establish
causality.
4. Practical Implications: These findings are particularly relevant for the University of Baghdad,
suggesting that implementing integrated control systems could lead to more effective
budgeting practices.
b. Limitations: While the study provides a robust framework for understanding the relationships
among various components of integrated control systems, several limitations should be
acknowledged. First, the sample size of 60 may not be sufficiently large to generalize the
findings across different industries or organizational sizes. Second, the study relies heavily on
self-reported data, which could be subject to response bias. Third, the cross-sectional design of
the study limits the ability to infer causality among the variables. Lastly, the use of only
statistical methods means that qualitative aspects, such as organizational culture or employee
morale, are not deeply explored, potentially missing out on nuanced factors that influence item
budgeting.
c. Recommendations: Based on the findings and limitations of this study, several
recommendations can be made for future research and practical applications.
1. Extend the Sample Size: Future studies could use a larger sample to enhance the reliability of
the findings. This will not only strengthen the statistical power of the analysis but also enable a
broader generalization of the results. Specifically, incorporating a diverse range of sectors
which can provide a more comprehensive understanding of the impact of integrated control
systems on item budgeting.
2. Longitudinal Study: A longitudinal study design could offer insights into the causal relationships
among the variables.
3. Incorporate Qualitative Methods: In addition to quantitative analysis, future research could
integrate qualitative methods like in-depth interviews or focus groups. This approach can
uncover deeper insights into the subjective experiences and perceptions of individuals involved
in item budgeting. It will also help in understanding the context and nuances that quantitative
data alone may not reveal, such as specific challenges and strategies in implementing
integrated control systems.
4. Investigate Other Variables: Further research could explore additional variables not included in
this study, such as the role of organizational culture or varying management styles, to provide a
more comprehensive view.

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VOL.19, ISS.67, YEAR.2024 P-ISSN: 1818-9431, E-ISSN: 2617-9849
Page | 269
5. Practical Implementation: Organizations could consider training programs focused on
improving alignment and aggregation within their control systems, given their strong
correlation with effective item budgeting.
By addressing these recommendations, future research can offer a more comprehensive
understanding of how integrated control systems impact the efficiency and effectiveness of
item budgeting within organizations.
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