Abstract

The construction sector is considered one of the most important sectors that support the economic development in any country as it helps in the development of the infrastructure, and affects the development of other sectors.

The study's main objective was to identify the impact of the internal control systems according to the (COSO) model with its elements (control environment, risk assessment, control activities, information and communication, monitoring and follow up) on the operational performance of construction companies in the Gaza Strip. Moreover, the current study aimed to examine the extent to which construction companies in the Gaza Strip comply with the internal control system structures according to the model with its elements.

In order to achieve the objectives of the study, it was implemented on (46) construction companies that operate efficiently and effectively in this sector and have organized financial and administrative systems governing their work. Therefore, the researcher designed a questionnaire for the study, which consisted of (49) paragraphs as a tool to collect required data, and was distributed to the sample of the study consisting of (460) individuals as (10) questionnaires were given to each company and retrieved (415) questionnaire valid for analysis (90.2%).The researcher also used the descriptive analytical method.

After analyzing the results, the study found that there is a great commitment of constriction companies  to the internal control structures of (COSO) model and there is a statistically significant positive effect for each of the elements of the model on the operational performance. Furthermore, the current study recommends that construction companies need to strengthen internal control systems that are efficient and effective by allowing the structures of their control systems to depend on the elements of the (COSO) model. Also it recommends researchers to conduct further studies on other sectors such as services , trade and industry.

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