The Role of Internal Auditing in Improving the Quality of Accounting Information in the Municipalities of the Southern West Bank Governorates

Abstract

This study aimed to identify the extent to which internal auditors apply performance standards to improve the quality of accounting information in the municipalities of the southern West Bank governorates. The study adopted the descriptive analytical method for its suitability in achieving the objectives of the study. A questionnaire was designed to collect field information, which was designed based on a review of previous studies and the measures that were used, taking into account the Palestinian context. The study sample included 103 auditors, accountants, and financial managers working in accounting departments in 28 municipalities operating in the governorates of the southern West Bank, namely Bethlehem Governorate and Hebron Governorate. The number of accountants and auditors in those municipalities reached 129 employees, and 123 questionnaires were distributed, and 103 valid questionnaires were analyzed using SPSS. Accordingly, the study showed that the level of application of internal audit standards in the municipalities of the southern governorates of the West Bank was high, as the order of application of the standard for following up on internal audit results was high, followed by the application of the standard for management’s acceptance of risks, implementing the internal audit mission, and managing internal audit activities. Planning the internal audit mission, the nature of internal audit work, and communicating internal audit results. In addition, the study indicated that the quality level of accounting information in the municipalities of the southern governorates of the West Bank was high, and that internal auditors’ application of performance standards in internal auditing has a positive impact on the quality of accounting information, on the availability of suitability in accounting information, as well as on the availability of honest representation in the information. Accounting. According to its results, the study recommended the need to strengthen internal control over the internal audit mission in the municipalities of the southern West Bank, to ensure that internal audit is carried out in accordance with the standards established for it. Internal auditors in municipalities must also pay attention to all characteristics of the quality of accounting information and ensure them, especially the true representation and suitability of accounting information. In addition to the necessity of work by all municipalities, whether small, medium or large in terms of population and employees, to provide and verify the quality of accounting information, because of this great importance on the level of competition in obtaining financing, and the level of governance of the municipality that works to develop the local community. The municipality is a representative body for the local community it serves.