Digital Divide’s Impact on Accounting Information Systems Risks Faced by Financial Auditors: A Jordanian Case Study

Abstract

The study emphasizes the importance of organizational structure, human capital, and legal controls in reducing accounting system risks. Three research questions explore the impact of the organizational structure, the role of human capital, and the significance of legal controls in risk reduction. Using statistical analysis, 104 questionnaires were distributed, and 76 were collected for the statistical analysis, including simple linear regression. The study reveals significant findings. The organizational structure plays a positive and influential role in establishing sound internal control systems that reduce accounting system risks. Qualified human capital contributes to technical progress, enhancing the accuracy and efficiency of financial audit activities. Robust legal controls effectively identify deviations, ensuring data integrity and compliance with international standards. Recommendations for the JDRC include establishing a clear organizational structure, investing in qualified human capital, and implementing comprehensive legal controls to mitigate accounting system risks. This study contributes to the literature by addressing unique variables and highlighting the risks and limitations of accounting systems within the JDRC. The findings inform organizations in similar contexts, guiding effective risk mitigation strategies and enhancing accounting system performance.