Abstract:
The main objectives of this study was to assess the compliance of the Palestinian municipalities for implementing the internal control and auditing procedures issued through the guidelines manual for internal control in the local government units ( LGU). The study sample includes 26 municipalities out of 27 municipalities that were internal control profession was institutionalized in 2015. The guidelines manual was prepared in 2014 and has 22 procedures in addition to what is required in the methodology of the manual in the preparation of control reports that will be discussed with the audit committee and the municipal council and the extent of taking into account the notes and recommendations in the reports of the internal auditors, and to follow up the implementation of those notes and recommendations. The study showed that the level of compliance with the procedures and the preparation of control reports did not exceed 77%, 50% for the level of discussion of the control reports with the audit committee and the municipal council, 53% for taking the recommendations of the internal auditor, and 50% for following up the implementation of the internal audit reports recommendations.
The study recommended spreading this experiment to the rest of the municipalities, printing and distributing the guide manual to the other municipalities, initialization of this function for the other municipalities, in addition to adopting the Municipal Development and Lending Fund the existence effective function of internal auditing and auditing within the municipality in its KPIs. And finally taking into account the observations of the internal auditors and following up on their implementation.
Keywords: Internal Control, Internal Audit, Internal Control and Audit procedures, Palestinian Municipalities.