The Expected Impact of Applying Forensic Accounting in Palestine: Auditors' Perspectives رسالة ماجستير

Abstract

There is an increasing need for advanced investigative tools to counter financial fraud and the complexity of financial disputes, in order to enhance the quality of audit and restore confidence in financial reporting. In Palestine, auditors practice their work in a challenging environment, most notably political instability, an inadequate regulatory framework, and a lack of specialized expertise in forensic accounting. Therefore, this study examines the expected impact of the application of forensic accounting on the quality of auditing from the point of view of Palestinian auditors, focusing on fraud detection techniques, litigation support, and the professional qualifications necessary to practice it effectively. The study adopted the descriptive-analytical approach through a structured questionnaire that included 51 licensed auditors in Palestine, to survey their views on the potential benefits and practical obstacles of integrating Forensic Accounting in the auditing profession. Statistical analysis using the SPSS program revealed a strong consensus among auditors on the positive role of forensic accounting in improving audit accuracy, detecting fraud, and enhancing public confidence in financial statements. Reliability tests also showed high internal consistency (Cronbach’s Alpha = 0.876), and the factorial analysis identified two main dimensions: perceived benefits and contextual barriers. The results of the regression proved that forensic investigation techniques and transparency-enhancing practices have a statistically significant positive impact on the perceived quality of audit reports. However, the auditors highlighted major challenges, indicating weak legal compliance, lack of specialized professional training, and limited institutional structure supporting forensic accounting practices in Palestine. The study concludes that the integration of Forensic Accounting in the audit field can significantly improve its quality, by enhancing fraud detection, ensuring the accuracy of reports, and providing more robust support for resolving financial disputes. It also provides practical recommendations for policy makers, audit offices, and academic institutions, focusing on the need for clearer legislation, structured professional training, curriculum development, and institutional frameworks that support forensic -based auditing. By meeting these requirements, forensic accounting can become a vital tool to promote financial transparency, fight corruption, and support economic resilience in the Palestinian context