The impact of internal control requirements on profitability of Palestinian shareholding companies Palestinian Banking Sector

Abstract

This research aims to investigate the compliance of Palestinian shareholding companies with the requirements of internal control and the effect of the compliance of the shareholding companies with the requirements of the internal control standard on their profitability. A questionnaire was used to collect data about the compliance with internal control requirements to achieve the research goal. The researcher uses the qualitative data analysis methods. The researcher used the statistical package for the Social Science (SPSS) for analyzing the data. The results of study revealed the degree of compliance with all components of internal control is very high, and the effect of internal control on profitability is significant and positive. The study reach to certain recommendations: The managers of all shareholding companies should develop the internal control system to maximize the well-being of their entities. The management should publish all policies such as integrity and morale and announce it as a part of his mission to enhance the control environment culture. The auditing association should coordinate with Palestinian stock exchange to cooperate to issue anew rules related to internal audit and this rules should audited by external auditor to make sure this rules are implemented.