The Impact of Internal Control Systems on Financial Performance of Palestinian Banks رسالة ماجستير

Abstract

This study aimed to identify the impact of internal control on financial performance in Palestinian banks. The study population consisted of employees in the internal control, auditing, and accounting units in Palestinian banks. The researcher used a random sample method, with the study sample consisting of (70) employees. The researcher used the quantitative analytical approach and a questionnaire as a study tool. The study concluded that there is a statistically significant positive relationship between control and supervision activities and financial performance in Palestinian banks. On the other hand, the study concluded that there is no statistically significant relationship between the regulatory environment, risk assessment, communications, information, and financial performance in Palestinian banks. Accordingly, the study presented several recommendations, most notably: Focusing on regulatory activities within Palestinian banks by developing appropriate and comprehensive regulatory policies and procedures, and continuously updating them to keep pace with changes in the work environment. In addition, activating the role of oversight and continuous evaluation of internal control systems by establishing effective independent units to ensure performance review and compliance with approved systems, procedures, and policies. It also recommended reviewing the mechanisms for implementing internal control elements: the control environment, risk assessment, communications, and information, and working to implement them more effectively. Focus on continuous training for employees of internal audit and control units, and conducting periodic reviews of internal control systems in banks.