The Impact of Internal Control and Electronic Disclosure on the Electronic Auditing Risk in the Jordanian Industrial Public Shareholding Companies

Abstract

Purpose: The aim of this study is to examine the possibility of the risk associated with electronic auditing by identifying the relationships between the various internal control aspects (control activities, control environment, monitoring, information and communications, and electronic disclosure) Theoretical framework: The Jordanian Industrial Public Shareholding Companies as other sectors, apply standards for internal audit that set by experts and electronic auditing using a new electronic technique that may affected by IC and ED. Design/methodology/approach: The descriptive statistics used to describe the electric questionnaire responses of the study sample using SPSS statistical analysis. The study population was made up of the finance department personnel and financial managers of the 45 public shareholding businesses, and 225 companies that were listed on the Amman Stock Exchange up until the end of December 2021. Findings: The results show that in Jordanian public shareholding businesses, risk assessment with its aspects (internal control and electronic disclosure) had a statistically significant influence on reducing audit risk in their dimensions (control risk, inherent risk, and discovery risk). In addition, the study determined that electronic disclosure had a statistically significant impact on lowering audit risk in Jordanian public shareholding corporations. Research, Practical & Social implications: The implications for Practice of the adoption of electronic systems will raise the risks to the confidentiality and reliability of accounting data. This is the purpose of electronic auditing, since it decreases the possibility of misrepresentation and manipulation of accounting data provided electronically. Further study can involve many countries in the region so as the conducted results can be widespread and globalized. Originality/value: The study among the first highlighted the impact of internal control and electronic disclosure for the risk associated with the electronic auditing in the Jordanian Industrial Public Shareholding Companies.