The Impact of External Audit on the Quality of Financial Reports in Jordanian Insurance Companies

Abstract

This study aimed to the impact of an external audit on the quality of financial reports with its dimensions (relevance, credibility) in Jordanian insurance companies, The study population consisted of the auditors, whose number is (440), and distributed (209) questionnaires, returned of them (185) questionnaires, and the valid questionnaires for analysis were (169) questionnaires representing a responses rate of (71.9%) of the study sample. Some appropriate statistical methods were used and the statistical program (""SPSS"") was used. The results showed that there is a high level of external audit, and the level of the quality of financial reports was medium. The statistical analysis indicated a statistically significant effect at the significance level (0.05 ≥α) for external audit on the relevance of financial reports of Jordanian insurance companies. This result may be because the audit offices contracted by Jordanian insurance companies seek to examine and evaluate the data, reports, financial statements, administrative activities and processes in these companies objectively, and impartially, to obta. The study recommended that external auditors should continuously participate in training programs and workshops to inform them of all that is new in the audit profession, especially about the insurance sector.