Internal Audit and its Impact on Risk Management at the Islamic Banks Listed in Amman Stock Exchange

Abstract

This study aims to explain the impact of internal audit on the management of risks at the Islamic banks listed in Amman Stock Exchange, The population of the study consists of financial managers and accountants working at the Islamic banks listed in Amman stock exchange, which are three in number, according the report of ASE for the year 2016. Due to the small number of banks of the population of the study, all of them were included in the sample. (100) questionnaires were distributed among the participants of the study sample, of which (87) were recovered. The main conclusions of the current study can be summarized as the commitment of Islamic Banks listed in Amman Stock Exchange to the standards of internal audit related to attributes as a whole is (3.86). Results showed also that managements of internal audit at Islamic banks are committed to the standards of Purpose, authority and responsibility; the standard of independence and objectivity; the standard of proficiency and due professional care; and the standard of Quality Assurance and Improvement Program to a high degree. The highest commitment is to the standard of independence and objectivity, while the lowest level of commitment was directed to the standard of Quality Assurance and Improvement Program among the managements of internal audit at Islamic banks.Based on these conclusions, the analysis of data and testing the hypotheses, the researchers recommends .Increasing the attention paid to internal audit, due to its importance in supporting the function of risk management, through the relevant specialized training courses, and the provision of support to the managements of internal audit in terms of human resources, which are trained and qualified, academically and practically.