Auditing practices in banks: an empirical study of Jordan

Abstract

This paper proposes a framework to analyse effectiveness, uniformity, relationship and responsibility in the banking sector using Jordan as an example. The perceptions of Jordanian banks' internal and external auditor's in addition to financial managers have been investigated. In general, it was found that the respondents believe that audit quality in the Jordanian banking sector ranges from satisfactory to very good. The results indicate a positive and significant correlation between audit quality and effectiveness and relationship. The data was collected from 100 auditors. This approach provides a more comprehensive framework to examine the banking sector. With an audit function, businesses must be operating in accordance with the pre-determined policies, enacted regulations, and rules. Internal auditing is closely tied to the internal control of bank operations and helps to ensure against deliberate losses and ems.As far as contribution is concerned, this study is regarded to be innovative and is one of the first to explore auditing at Jordanian banks.