Search Results (5)

In light of the function of Internal Auditing and its significance in assessing and ensuring the validity of data, information, reports, and high lists generated by the Accounting Information System and improving its credibility and dependability, the purpose of this study was to investigate the relationship between Internal Auditing (IA) and Accounting Information System (AIS) in Jordanian banks, with a focus on the mediator role of Organizational Commitment (OC). A cross-sectional survey method was used to collect data from a sample of employees who work in banks, including those who work in the internal audit department. The collected data were analyzed using SPSS 26.0 and PROCESS V4.1. The study sample includes 193 employees who work in banks, including those who work in the internal audit department. Descriptive statistical methods, such as frequencies, percentages, means, and standard deviations, were employed to depict both the characteristics of the sample and the participants’ responses to the study items. The results indicate that IA has a positive relationship with AIS. Moreover, the results indicate that OC partially mediates the relationship between IA and AIS in Jordanian banks. Full article

This research paper describes the accounting practices of Jordanian companies engaged in agricultural activities, and identifies the influence of company characteristics on measurement practices related to asset pricing and level of disclosure required by IAS 41. Company characteristics were considered as: size, intensity of biological assets (BA), level of international activities, and audit for the Big Four. Dependent variables were considered measurement practices related to valuing BA as well as resultant harvest and disclosure level, the latter being measured by mandatory and voluntary disclosures. The entire population of companies that include one or more agricultural activities in their purposes and are considered reporting companies formed the research sample, giving a total of 259 companies. The findings revealed that both intensity of BA and level of international activities have a positive impact on measurement practices. Audit for the Big Four was the strongest variable influence, the overall disclosure level prescribed by IAS 41, followed by the level of international activities variable. However, the intensity of the BA variable affects only the overall disclosure level for companies that measure their BA based on the cost method. Firm size was found to have no influence on either measurement practices or disclosure level. The key value of this paper is its examination of the role of company characteristics on measurement practices and level of disclosure required by IAS 41 in the context of Jordanian companies. Through this examination, this study is helpful to standards setters and regulators who obligate and issue the financial regulation and reporting standards at a national or international level, supporting their understanding of measurement and disclosure practices adopted in agricultural companies in the developing country context of Jordan. Full article

Identifying factors/latent constructs deemed to influence internal audit effectiveness (IAE), through identifying variables used as measures of effectiveness and hypothesising which variables have a statistically significant relationship with IAE was the primary objective. Secondary objectives involved exploring the perceptions and viewpoints of internal auditing and providing general recommendations. To achieve the above objectives, questionnaires were remitted to internal auditors (IA) in various countries, receiving 402 final valid responses. Exploratory factor analysis (EFA) was carried out to identify new latent variables/constructs, with confirmatory factor analysis (CFA) in structural equation modelling (SEM) utilised to confirm these factors. The EFA process identified 7 latent factors, with 5 being confirmed through SEM. These factors, confirmed the positive influence of 8/16 hypotheses with 3/16 having partial confirmation, 4/16 not achieving any statistically significant evidence and 1/16 having negative influence. Risk Management, IA size, competency, management support, External Audit (EA) and Audit Committee (AC) cooperation, follow-up process, and control environment were all deemed to positively influence IA effectiveness. Independence, objectivity, and standard adherence achieved partial confirmation of their positive influence. Audit quality, Big Data, scope limitations and public/private organisations achieved no statistically significant results on their influence, while outsourcing was deemed to negatively influence effectiveness. Full article

The purpose of this study is to look into the role of internal audit (IA) in reducing the effects of creative accounting (CA) on financial statement reliability in Jordanian Islamic Banks. The research study used the survey methodology to examine the role of internal audit (including independence and objectivity, verifiability, professional care, and neutrality) to reduce the effects of CA on the reliability of financial statements in Jordanian Islamic Banks. The population consists of all practicing auditors in Jordanian Islamic Banks, with a sample of 100 practicing auditors chosen from the total population of 143 auditors using a simple random selection approach. The questionnaire was distributed to the internal auditors working in these banks. Moreover, the primary data were analyzed using the partial least squares (3.3.3) software. The results showed that there was a role for IA (including independence objectivity, verifiability, professional care, and impartiality) in limiting the effects of CA on the reliability of financial statements in Jordanian Islamic Banks. Full article

With the application of the agency theory and institutional theory, this study is intended towards the measurement of sustainable corporate governance (SCG) impact on internal audit function (IA) within Omani public listed companies. This study will also theoretically consider the Chinese investment in Oman and its potential impact on Oman’s corporate governance. For this study, SCG is an independent variable and IA is the dependent variable. This study used a descriptive cross-sectional survey design. Data is collected by an internet-based tool and analyzed via PLS-SEM and SPSS. Result suggests that SCG has a significant and direct relationship with IA. In order to attract and sustain Chinese investment and to achieve SCG, this study can assist regulators, professional bodies, and organizations in amending their codes of corporate governance and organizational policies by introducing SCG clauses into their policies and codes with emphasis on the protection of foreign investors. To the best of the knowledge of the researcher, this study is unique, as previous studies demonstrate the IA on SCG, whereas this study emphasizes that SCG can impact the control functions within organizations that also include IA. Full article