Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Role of Internal Control Components in the Development of External Auditor Performance in Accordance with Coso Decisions: A Field Study on Audit Offices/Bureaus in Gaza Strip

Author(s): Diana Fawaz Saleem Al-Sady, Mohammed Nadem Dabaghia, Ala'a Alhorani

The study aimed to identify the role of the internal control components in the development of the external auditor performance in the Gaza Strip in accordance with the decisions of the Committee of Sponsoring Organizations (COSO) including its domains (Control Environment, Risk Assessment, Control Activities, Information and Communications, Supervision and Control). The study population consisted of the employees in external accounting audit offices in Gaza Strip from various types of occupations and careers. The sample comprised (81) employees who were selected based on a simple random approach. (89) Questionnaires were distributed, while 81 out of them were valid for analysis. The Statistical Package for Social Sciences (SPSS) was applied to test the study hypotheses and conclude the results. The multi-regression test results showed that the components of internal control had no effect in developing the performance of the external auditor in Gaza Strip except for one coefficient, which is control and supervision. However, the simple regression testing findings showed that there was an impact of all control components (Control Environment, Risk Assessment, Information and Communications, Control Activities, Supervision, and Control) in the development of the external auditor's performance in Gaza Strip. The study recommended strengthening and supporting internal control systems because they play an essential role in institutions, and to give more importance to different control components for their significant role in developing and improving the performance of the external auditor. Moreover, the study underlined the significance of boosting the awareness of the supervisory and control awareness at all managerial levels by organizing training courses to raise employees' awareness of the importance of internal control. The researchers also recommended working continuously on developing external auditors' skills by interested accounting associations to ensure their continuous readiness to perform their tasks appropriately.

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