FROM GOVERNANCE TO DIGITISATION: INTERNAL AUDITING, DIGITAL TRANSFORMATION CAPABILITY, AND ACCOUNTING DIGITISATION IN BANKS LISTED ON THE PALESTINE EXCHANGE

Muntasir Khaled Hamdan; Nehad Ibrahim Ineizeh; Asharaf Mohamad Ramli

doi:10.33102/4zd02v90

Authors

Muntasir Khaled Hamdan Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Nilai, Malaysia Author
Nehad Ibrahim Ineizeh Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Nilai, Malaysia Author
Asharaf Mohamad Ramli Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Nilai, Malaysia Author

DOI:

https://doi.org/10.33102/4zd02v90

Keywords:

Internal auditing, Digital transformation capability, Accounting digitisation, Corporate governance, Palestinian banks

Abstract

This paper presents original academic research on listed banks on the Palestine Exchange (PEX) and develops a conceptual-empirical framework to explain how internal audit supports the full process of accounting digitalisation in these listed banks. This study challenges the traditional perception that internal audit functions only as a post-event compliance tool and instead positions it as a strategic governance mechanism for digital transformation. It clarifies that in the heavily regulated banking environment, digital accounting has dual attributes of technological upgrading and governance transformation, and it covers five core governance dimensions, including assurance, data quality, and others. Drawing on four foundational theories, including agency theory, this study proposes two functional paths through which internal audit impacts accounting digitalisation. The study adopts a quantitative explanatory research design, conducts analysis using partial least squares structural equation modelling (PLS-SEM) based on data from a cross-sectional survey distributed to qualified practitioners at PEX-listed banks, and finally sums up the dual research value of the work, providing support for bank boards of directors, audit committees, internal audit departments, and regulators in emerging markets.

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