It was clear from the recent financial scandals and fraud law suits in the international and regional firms that the internal control in general isn't as strong as should and that there are some weaknesses that led to this outcome and that why we are interested to investigate the internal control and the internal observation systems in the listed Palestinian corporations to put the lights on the real reasons and causes for such problem.
Many researchers and observers believe that one of the main reasons for such problem is the insufficient reliance on the function of the internal auditor and not assigning this function with its real importance in the companies, especially if we consider how significant is this function becomes as the companies are getting larger and the operations are extending to be more in terms of the volume and the complexity and more importantly the competition is getting tougher among the companies.
The internal audit is consider to be a type of the observational procedures that can be used to assess the effectiveness of the other observational and audit procedures and that is why many researchers consider it as the core of concentration in the audit hierarchy that supplement the other tools in ensuring these tools ability to safeguard the companies' assets, make sure about the fairness of the financial data and encourage the commitment in the managerial policies. [...]
Table of Contents
1 Chapter One Proposal contents
1.1 Introduction:
1.2 Statement of the problem:
1.3 Objectives:
1.3.1 Main objective
1.3.2 Specific objectives:
1.4 Significance of the project:
1.5 Scope and limitations of the project:
1.6 Research Methodology:
1.7 Related work:
1.8 Time table:
2 Chapter Two Introduction to
2.1 Section one: Introduction to Internal Audit
2.1.1 Introduction:
2.1.2 Internal audit definition:
2.1.3 The development of internal auditing:
2.1.4 The internal auditing as an independent job:
2.1.5 The types of the internal auditing:
2.1.6 The difference between internal and external audit :
2.1.7 Outsourcing to do an internal audit function:
2.2 Section two: The importance and the role of the internal audit
2.2.1 Benefits of Internal Audit
2.2.2 The importance of internal audit in adding value:
2.2.3 Objectives and scope of internal audit:
2.2.4 Internal audit quality:
3 Chapter Three The role of internal audit in performance tuning
3.1 Section one: The role of internal auditor in designing and testing internal control:
3.1.1 Internal Control:
3.1.2 Fraud Detection by Internal Auditor:
3.2 Section Two: Risk management and internal auditing
3.2.1 The concept of risk and management techniques:
3.2.2 The role of internal audit in risk management:
3.3 Section Three: The relationship between internal auditing and evaluation of efficiency and effectiveness:
3.3.1 The concept of measuring efficiency and effectiveness:
3.3.2 The role of the internal auditor in the measurement of efficiency and effectiveness:
4 Chapter Four Case Study
4.1 Introduction:
4.2 About Bank of Palestine:
4.3 Interview details :
4.4 Bank of Palestine Audit Committee :
4.4.1 Introduction:
Chapter Five Results & Recommendations
5.1 Section one: Results
5.2 Section two: Recommendations
5.3 Section three: Suggestions for future research:
Objectives & Research Themes
The primary aim of this research is to evaluate the role of internal auditing in controlling and enhancing both financial and managerial performance within Palestinian corporations, specifically through a case study of the Bank of Palestine, while identifying the environmental and structural factors that influence its effectiveness.
- The impact of internal auditing on corporate governance and internal control systems.
- Risk management strategies and the role of internal auditors in fraud prevention.
- The influence of auditor qualifications and institutional independence on performance outcomes.
- Methods for measuring organizational efficiency and operational effectiveness.
- Challenges associated with outsourcing internal audit functions in the banking sector.
Excerpt from the Book
2.1.3 The development of internal auditing:
According to the Pickett (2005) opinion state that “internal auditing is now a fully developed profession. An individual employed in internal audit ten years ago would find an unrecognizable situation in terms of internal audit’s role, the services provided and the approach followed. For full appreciation of internal auditing, it is necessary to trace these developments back and extend trends into the future. It is important to understand the roots of internal auditing and the way it has developed over the years. Internal auditing developed as an extension of the external auditing role in testing the reliability of accounting records that contribute to published financial statements”( Pickett, et. Al, 2005,p.3).
Cascarino and Van Esch (2005)state that “the profession of internal auditing, as many other professions, has its roots in the Industrial Revolution of the nineteenth century. The enormous growth of the business sector found existing professionals scrambling to keep up. Specialists appeared, coping with such innovations as corporate law, banking provisions and bankruptcies. This led to the formation of a plethora of organizations and associations that, over a period of time, amalgamated into the British Institute of Chartered Accountants ICA and the American Certified Public Accounts ACPA in their respective countries” (Cascarino & Van Esch , 2005,p.3-4).
The main difference between the two bodies at that time was the method of achieving professionalism in the bodies. The American body adopted a style that combined the academic and business worlds, and produced professionals that were a hybrid of both. The British institute took the more traditional English path of a trade . This situation continued into the mid-1950s, with the two institutes dominating the business world in those countries and becoming an increasingly integrated part of corporate life, to the extent that almost half of all qualified professional accountants were employed outside audit firms.
Summary of Chapters
1 Chapter One Proposal contents: Outlines the research problem, objectives, and significance, focusing on the need to investigate internal audit practices in Palestinian corporations.
2 Chapter Two Introduction to: Provides a comprehensive theoretical background on internal auditing, its historical evolution, definitions, and its differentiation from external audit functions.
3 Chapter Three The role of internal audit in performance tuning: Explores how internal audit contributes to performance optimization through internal control, risk management, and the assessment of operational efficiency.
4 Chapter Four Case Study: Presents a practical analysis of internal auditing practices at the Bank of Palestine, incorporating interview findings and committee roles.
Chapter Five Results & Recommendations: Summarizes key research findings and provides strategic suggestions for improving internal audit effectiveness in Palestinian banks.
Keywords
Internal Auditing, Financial Performance, Internal Control, Bank of Palestine, Risk Management, Corporate Governance, External Audit, Fraud Detection, Operational Efficiency, Accountability, Palestinian Corporations, Transparency, Professional Standards, Management Performance, Auditing Committee.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing the effectiveness of internal audit functions in monitoring and improving the financial and managerial performance of listed companies in Palestine.
What are the central thematic fields covered?
The central themes include the evolution of internal auditing, the distinction between internal and external auditing, risk management frameworks, and the role of audit committees in corporate governance.
What is the main research question?
The study seeks to answer whether the internal auditing department in Palestinian listed companies effectively fulfills its role in monitoring financial and managerial performance.
Which methodology is applied?
The authors employ an analytical descriptive methodology combined with a specific case study of the Bank of Palestine, utilizing interviews and professional documentation.
What is the main content of the study?
The study moves from a theoretical overview of internal auditing standards to a practical evaluation of how these standards are applied within the banking sector, specifically addressing fraud detection and efficiency measurement.
Which keywords best characterize this work?
Key terms include internal auditing, risk management, internal control, financial performance, and corporate governance.
How does the Bank of Palestine ensure independence in its audit process?
The bank maintains independence by adhering to international standards, establishing an audit committee that reports to the board, and having general authorization to access financial data across all levels of the institution.
What is the significance of the "Fraud Triangle" discussed in the text?
It is used as a theoretical framework to help internal auditors identify risks associated with incentives, opportunities, and rationalization that lead to financial misconduct.
- Citation du texte
- Shakir Al-ghalayini (Auteur), Mohammed A. Keshta (Auteur), Thabet M. Hassan (Auteur), 2013, The Effect of the Internal Auditing on Financial Performance, Munich, GRIN Verlag, https://www.grin.com/document/296106
