Impact of Internal Control on Fraud Deterrence in the Palestinian government sector: The Moderating Role of Forensic Accounting رسالة دكتوراة

Abstract

This study examines the impact of internal control, as outlined in the COSO framework, on fraud deterrence within the Palestinian government sector, with a focus on the moderating role of forensic accounting services. The primary objective was to assess the impact of COSO internal control frameworks on deterring fraud and to investigate whether forensic accounting enhances this impact. The study tool was a robust questionnaire designed for this purpose, containing 56 items distributed across nine areas that comprised the questionnaire. The questionnaire was administered to a simple random sample of 256 employees, comprising external auditing, the judiciary, and the Financial and Administrative Control Bureau, along with representatives from the Anti-Corruption Commission, Economic Prosecution, and the Financial Follow-up Unit. The results indicated considerable variation in the implementation of internal controls across government institutions. The control activities received the highest mean score, followed by the control environment. By contrast, risk assessment, information and communication, and monitoring exhibited comparatively lower performance. The results show a statistically significant positive relationship between comprehensive internal control and fraud deterrence. According to the results, forensic accounting plays a vital moderating role in increasing the influence of internal control on fraud prevention. The explanatory power increased following the introduction of the moderator. The study found that the integration of strong internal control systems with forensic accounting constitutes an actual deterrent to fraud in the Palestinian government sector. The study recommends the establishment of a resilient control framework based on integrity and transparency. the complete documentation of procedures and policies, and the formation of an autonomous Palestinian professional organization to oversee forensic accountants. The study also recommends using modern technologies for fraud detection, increasing specialized training programs for audit staff, improving collaboration between oversight and judicial agencies with clearly defined roles, and incorporating forensic accounting into university curricula.