Jordanian Auditors Research Articles

Attitudes of auditors about employing artificial intelligence in the auditing process: Jordanian auditing companies are an example

Objective: This research aims to investigate the degree of attitudes of Auditors toward employing Artificial intelligence in auditing process. Also, it aims to investigate if there any statistically differences in a degree of auditor's attitude toward employing artificial intelligence in auditing process distribute to the gender and experience. Methodology: The study used a descriptive analytical approach. The data were collected from (94) auditors from four accounting company in Amman ، Jordan who were chosen randomly. using a questionnaire developed for this purpose. Findings: The findings of the study shows that the degree of attitudes of auditors in accounting companies in Jordan toward employing artificial intelligence in auditing process is high with mean (3.69) and Std. Dev (0.91)، Also ، the finding of the study shows that there no statistically differences at the level (a= 0.05) in degree of attitude of Jordanian auditors toward distributes to gender and experience year.

Navigating Ethics: Insights into External Auditor Compliance from Financial Managers and Internal Auditors in Jordanian Companies

This study aims to assess to what extent Jordanian external auditors comply with the Code of Ethics for Professional Accountants, as perceived by financial managers and internal auditors. The hypotheses are tested using one sample and an independent sample t-test for a sample of 53 industrial public shareholding companies listed on the Amman stock exchange during 2020–2023. The study utilized the survey instruments to collect the necessary data from 200 participants. The findings show that the external auditor complies with the code of professional ethics at a high to moderate level per the Relative Important Index from the viewpoint of both financial managers and internal auditors. Moreover, the outcomes also show there are no significant variances between their beliefs regarding the adherence of external auditors to the code of ethics. The study consequences indicate that the enacted regulations that organize the work of the auditors can effectively enhance the compliance of Jordanian auditors with the code of professional ethics. Nevertheless, it emphasized the need for more shared efforts for more compliance with professional ethics in the auditing profession. The study suggests Many recommendations to enhance auditors’ compliance such as continuous oversight of auditor compliance from the Jordanian Association of Certified Public Accountants, ethical awareness, research and development in the area of ethics, and training programs to explain ethical complexities. This study assures the importance of enhancing ethical compliance in the auditing profession in an emerging country to increase public trust, attract investment, and improve financial statements integrity.

The impact of computer assisted auditing techniques in the audit process: an assessment of performance and effort expectancy

The rapid advancement of technology has had a significant impact on a wide range of industries, including the auditing industry. It is now obvious that employing Computer Assisted Auditing Techniques (CAATs) is a possible tactic for enhancing the effectiveness and efficiency of the audit process. This study evaluates how CAATs affect auditors' expectations for performance and effort in Jordan. Through a comprehensive survey of Jordanian auditors, this research provides insights into the factors that drive CAATs adoption. Utilizing structural equation modeling, the study confirms that both Effort Expectancy and Performance Expectancy positively influence CAATs adoption. These relationships are supported by robust path coefficients and low P-values, indicating statistical significance. The results of this study should clarify the possible advantages of including CAATs in the audit process and point out any difficulties auditors could encounter. Companies and professionals may choose wisely whether to embrace and use CAATs by comprehending Performance Expectancy and Effort Expectancy.

The Possibility of Using the Electronic Control at Jordanian Public Universities and the Obstacles that Hinder its Use from the Point of View of the Auditors of the Jordanian Audit Bureau

The study aimed to identify the possibility of using electronic control in the Jordanian public universities and the obstacles that impede its use from the point of view of the auditors of the Jordanian Audit Bureau. The study was conducted on auditors of the Audit Bureau at public universities. In order to measure the variables of the study, a questionnaire was designed and arbitrated by academics in Jordanian universities, and the descriptive analytical approach was used. Due to the small size of the study population of (40) auditors, the comprehensive enumeration method was used, and the number of valid questionnaires for analysis was (34), the study concluded that there is a significant possibility to apply (dimensions of financial, accounting, and administrative electronic control) arranged according to statistical importance in auditing processes, and that there are statistically significant obstacles to the electronic control. The dimensions of electronic control came to a high degree (financial control, accounting control, administrative control) arranged according to statistical importance and obstacles to apply electronic control to all fields to a moderate degree, and that one of the most important obstacles to the application of the electronic control is the universities’ fear of disclosing the financial data. The study recommended the need to apply the electronic control in its all fields in public universities and to remove the obstacles that hinder its application.

The effect of key audit matters on the audit report lag: evidence from Jordan

Purpose This paper aims to explore the potential effect of key audit matters (KAM) on the audit report lag (ARL). In particular, it aims to discover whether the number of KAMs reported by an audit firm in Jordan is related to the length of its ARL. Design/methodology/approach The authors analysed data from the first three years of KAM reporting in Jordan (2017–2019) for 194 public listed Jordanian companies to examine the relation between the number of KAMs and the ARL, taking into account several control variables related to the Jordanian context. Findings This study found that there is no statistically significant relation between the number of KAMs reported by Jordanian audit firms and their ARLs, suggesting that the KAM reporting in Jordan is somewhat superficial, with the selection of what is actually reported as a KAM not directly related to the efforts needed to deal with its concerns. However, this study also found statistically significant positive relations between the ARL and each of audit fees, audit firm size, the issuance of a qualified audit opinion and company leverage and a statistically significant negative relation between the ARL and company profitability. Originality/value This is one of the very few studies to cover the potential relation between KAM reporting and the ARL. In a developing country context characterised by limited demand for an external audit of high quality, this study finds that auditors may decouple on their reporting of KAMs by not actually making significant efforts to deal with them.

Factors that Play a Role in Improving the Efficiency of Continuous Audits using Computer Assisted Audit Techniques in enterprises including healthcare units

Internal auditing is a key function of any business enterprise, including healthcare units, being responsible for highlighting and bringing to notice of the upper management a fair evaluation of the organization’s internal control environment. With stakeholder satisfaction, compliance requirements, and value delivery increasingly taking centre stage, it functionally requires many organizations to adopt and implement a continuous auditing solution. Continuous auditing solutions often call for the adoption of various computer-assisted tools and techniques to help get the job done. The usage of these tools and techniques is subject to many different factors. This paper explores some of the factors that play a role in improving the efficiency of continuous audits using such tools and techniques. Auditors widely recognize Computer-assisted auditing techniques (CAATs). However, CAATs are not being used as widely as expected. The technology–organization–environment framework is used to identify and assess the organisational elements that influence CAAT utilisation after adoption. The purpose of this study is to see if using CAATs helps the auditing process. The usage of CAATs by audit firms and audit performance are both moderated by top management commitment. The data for this study was collected from Jordanian audit companies’ auditors. According to the conclusions of the investigation, CAAT adoption is determined by the cost–benefit of technology, company size, preparedness, and competitive pressure. The technical compatibility and complexity of client accounting information systems, on the other hand, appear to have little impact on CAAT utilisation. Top management has a direct impact on audit performance and is a key influencer in how CAATs are used by auditors. However, there is no correlation between audit firm usage of CAATs and audit performance (top management audit firm’s use of CAATs). Furthermore, the adoption of CAATs helps the whole audit process of audit companies.

The influence of technostress on the intention to use blockchain technology: the perspectives of Jordanian auditors

PurposeBlockchain technology is an indispensable solution for all professionals. However, auditors have not been adequately prepared to use blockchain technology. This study aims to examine the impact of technostress on auditors’ acceptance to use blockchain technology.Design/methodology/approachA model combining the technostress and factors from the technology acceptance model is proposed. Data were obtained from 142 auditors in the Big 4 and non-Big 4 firms through previously tested and validated questionnaires.FindingsAs hypothesized, the results show that technostress influences the perceived usefulness and ease of use of blockchain technology. This study finds that perceived ease of use and perceived usefulness are significant predictors of attitudes toward use decisions, while the latter is a significant predictor of behavioral intention to use blockchain technology. The results are valuable to accountants, auditors and audit firm managers.Originality/valueThis paper provides empirical evidence on the impact of technostress on auditor acceptance to use blockchain technology, which is deemed as a debate viewpoint.

Important of Competitiveness of Jordanian External Auditor and the Factors Affecting It Working in IT environment

The study aims to identify the factors that affect the competitiveness of Jordanian external auditors working in the information technology (IT) environment. In addition, it has identified to which extent the auditor is aware of the concept and the importance of competitiveness in the information technology environment. It has also touched upon the most important factors affecting the competitiveness of the audit process conducted in an information technology environment. To achieve the purposes of the study, the researcher has used a descriptive method in which literature of audit has been reviewed; furthermore, a questionnaire has been designed and distributed to a group of auditors in Jordan. The study has found that Jordanian auditors are highly aware of the concept and importance of competitiveness of audit offices working in an information technology environment. In addition, the study has indicated that there are a set of factors that affect the competitiveness of auditors; these factors are as follows: using information technology in audit services, audit fees, and professional performance quality as well as professional specialization of auditor in electronic systems plus internal control in IT environment and adherence to the regulations and instructions related to information technology governance in an information technology environment Keywords : Competitiveness of Auditor, Professional Performance quality, Audit Fees, Professional Specialization, Audit Offices in Jordan. DOI: 10.7176/RJFA/13-6-03 Publication date: March 31 st 2022

Robotic process automation and audit quality

This study aims to explain the Jordanian state of the implementation of robotic process automation RPA in auditing, and to examine the expected impact of RPA implementation on audit quality from the views of Jordanian auditors, furthermore, the study aims to define the challenges of RPA implementation in Jordanian auditing firms. The study employed a survey method to collect data by using questionnaires. Three hundred (300) questionnaires were supplied to the sample of the study of which two hundred and seven (207) questionnaires from retrieved questionnaires were valid for analysis. The results of the study showed that Jordanian auditing firms do not apply RPA despite the expected impact of implementation on audit quality, this may be justified by the challenges that the auditors believe, the most important as they indicated are the initial investment for creating or purchase RPA, and the changing resistant by auditors for different purposes. The contributions of this paper are by enriching the theoretical side by shedding light on RPA and knowing the state of RPA implementation in Jordanian auditing firms and examining the impact of RPA implementation on the quality of audit. This paper also identifies the main challenges of the implementation of RPA in the Jordanian environment.

The impact of consulting services on the disclosure of going concern in Jordanian commercial banks: External auditors’ perceptions

This study aims at identifying the impact of consulting services in disclosing going concern in Jordanian commercial banks. To achieve the aim of this study, a questionnaire was developed and distributed to the study sample. Whereas the study population consisted of 457 external auditors in Jordan, a random sample of 200 auditors was selected by 44% of the study population. Notably, the results of the study showed that there were statistically significant variations in the opinions of the study sample members concerning the impact of consulting services in disclosing the going concern of the institution. Meanwhile, the study suggests a set of recommendations, such as the need for Jordanian audit offices to reject offering consulting services until after ensuring that they do not conflict with the professional conduct of the auditor and his independence, and thus by defining the areas of the consulting services that are allowed to be provided to the audited institution, and the need to organize the consulting services’ work in Jordanian audit offices in a way that providing these services doesn’t interfere with the disclosure of the going concerning the institution

The Impact of Auditors’ Industry Knowledge and Experience on Premature Sign-Offs: Evidence from Jordan

This study aims to investigate the impact of auditors’ industry knowledge (AIK) and auditor experience (EXP) on premature sign-offs (PMSOs) among external auditors. PMSOs is one of dysfunctional behaviours in auditing that eventually affects the audit quality. Audit quality is defined as all audit procedures are satisfactorily performed and stakeholders are not negatively affected with the results of poor audit quality. While the topic of audit quality has received great attention from previous studies decades ago, studies on how AIK and auditor experience affects PMSOs are limited. Therefore, this study examined the effects of AIK and auditor experience on PMSOs. Survey data was gathered from 144 auditors in the Jordanian audit firms. AMOS-SEM was used to analyse the data for testing the hypotheses. Results revealed that AIK and auditor experience negatively affected PMSOs. Based on these findings, this study suggests that to a certain extent PMSOs practices are prevalent in Jordanian audit firms, AIK, and auditor experience are a measure that can be used to reduce the PMSOs practices. Thus, this study provides empirical evidence of the impact factor determining the effect of auditor knowledge in the industry and auditor experience on the dysfunctional behaviour-PSMOs and impact on audit quality. The limitations of this study and recommendations for future research are also provided.

Exploring the application of analytical procedures by Jordanian external auditors

This study aims to explore the application of analytical procedures (AP) as a major external auditing procedure in the developing country context of Jordan, a context characterised by the prevalence of closely held businesses, and limited demand for an external audit of high quality (Abdullatif, 2016; Almarayeh, Aibar-Guzman, & Abdullatif, 2020). To do so, the researchers conducted semi-structured interviews with twelve experienced Jordanian external auditors. The main issues covered are the detailed use of AP as an audit procedure and the most significant issues that may limit the effectiveness and reliability of this procedure in the Jordanian context. The main findings of the study include that AP are generally used and favoured by Jordanian auditors, despite their recognition of several problems facing the application of AP, and potentially limiting its reliability and effectiveness. These problems include weak internal controls of some clients, low quality of data provided by some clients, a lack of availability of specialised audit software for many auditors, and a lack of local Jordanian industry benchmarks that can be used to develop expectations necessary for the proper application of AP. The study recommends the establishment of such industry benchmarks, along with better monitoring by the regulatory authorities of the quality of company data, and increasing the efforts of these authorities on promoting the auditors’ use of specialised audit software in performing AP

The Impact of Social and Positive Psychological Capital on the Efficiency: A Field Study From the Perspective of Jordanian Auditors of the Performance of Audit Offices

The main objective of this study is to show the social positive and psychological impact on the performance efficiency of audit offices from the perspective of the employees in those offices, and to fulfill this, the researchers relied on two inputs: the inductive and descriptive analytical approach, as well as relying on spss software to analyze data of this study, and test the hypothesis, which were in descriptive statistics metrics, model fit tests, and multiple linear regression analysis, to test the study hypothesis. The study sample consisted of 325 qualified people working in these offices. The most important conclusion from this research is that the psychological capital develops the fruitful exploitation of auditors in the work, to accomplish the audit work. In addition, the directors of audit offices seek to establish social cooperative relations among office workers. The most substantial recommendations of this research are crystallized by attracting human and intellectually, psychologically, socially and practically qualified elements who have sufficient skills and experience in auditing processes, in addition, the demand to encourage teamwork, and give powers to team members, so that many of the work problems are resolved through teams.

Applying a new audit regulation: Reporting Key Audit Matters in Jordan

This study aims to explore the application of a new audit regulation, International Standard on Auditing no. 701 (ISA 701) on Key Audit Matters (KAMs), in the developing country context of Jordan. To do so, the researchers analyzed the content of audit reports issued in Jordan in 2017 and 2018, and conducted interviews with 18 Jordanian audit partners and directors involved in KAM reporting. Findings of this study show that the number of KAMs reported in Jordan is relatively small, and that they emphasize items such as accounts receivable, inventory, investment property, and revenue. They also show that audit firms generally disagree on the nature and content of KAMs, overwhelmingly tend to report industry‐specific KAMs rather than entity‐specific KAMs, and avoid reporting KAMs related to governance or internal controls. Justifications by interviewees include ambiguity of ISA 701 and discretion in its application, fear of displeasing closely held clients who do not demand high‐quality audits, and limited interest by regulatory authorities in the detailed content of KAMs.

The Impact of Joint Audit on Fraud Detection in Financial Statements From the Point of View of Auditors

This study aimed to identify the application of joint audits to the detection of fraud in financial statements as well as the impact of joint audits on the detection of fraud in financial statements from the point of view of Jordanian auditors. The study focused on investigating the impact of joint audits of the procedures of understanding management and the board of directors, as well as examining the relationship with the relevant parties, the company and financial industry, financial results and operational characteristics in order to identify the impact of joint audits on detecting fraud in financial statements through these procedures. Results indicate that there is no statistically significant impact of joint audits on the detection of fraud in the financial statements at the level of (5%) for all fraud detecting procedures in the financial statements. The study recommends not adopting or applying joint audit.

The Intellectual Impact of Cloud Accounting in Enhancing the Quality of Auditing for Jordanian Audit Offices

The Intellectual Impact of Cloud Accounting in Enhancing the Quality of Auditing for Jordanian Audit Offices

The Impact of Sustainability Dimensions in Improving the Quality of Financial Disclosure of Jordanian Shareholding Industrial Companies from the Point of View of External Jordanian Auditors

The Impact of Sustainability Dimensions in Improving the Quality of Financial Disclosure of Jordanian Shareholding Industrial Companies from the Point of View of External Jordanian Auditors

Factors Related to Organizational Commitment of Jordanian Auditors: A Structural Model

The relationships between neuroticism personality and workload and organizational commitment are explored in this study, with job burnout as the potential mediator. The study sample comprised 183 Jordanian auditors and the obtained data prove full mediation of job burnout on the association between workload and organizational commitment, and partial mediation of job burnout on the association between neuroticism personality and organizational commitment. Job burnout and organizational commitment are directly and negatively related. An integrated model grounded by three factors contributing to organizational commitment of auditors is presented in this study.

International Standard on Auditing No. 260 and Audit Quality: Evidence from Jordan

This study aims to explore the extent of external auditors awareness of the requirements of the International Standard on Auditing No. 260 (Communications with those charged with governance) on audit quality and to shed light on the effectiveness of the communication process based on auditors actual experience. A mixed method approach was employed to achieve the study objectives. The analysis of 116 questionnaires concluded that the requirements of the ISA 260 enhance audit quality, but the two-way communication between Jordanian auditors and the audit committee is ineffective from external auditor’s perception. The study also found that audit committees do not support external auditor when disagreements arise between auditors and their client management on accounting treatments. The qualitative interviews confirmed the quantitative results and revealed several explanations among which: 1) lack of qualified directors, 2) lack of a clear policy in selecting board members, 3) meetings with auditors are routinely held, and 4) insufficient oversight by the securities commission. The interviews also revealed that the recent version of Jordanian corporate governance has two potential factors have been viewed to improve the effectiveness of the communication process that are, the appointment of a ‘governance liaison officer’ who, among other responsibilities, supervise and document audit committee meetings with the auditor, and the use of cumulative voting technique in selecting board members. The findings of the study could be beneficial for regulators by ensuring the best implementation of cumulative voting to increase the representation of qualified members so that the communication process will be greatly enhanced.

Some Influential Elements in Improving Effectiveness of External Audit in Jordanian Audit Offices Field Study from the Point of View of External Auditors

This study aims to identify the impact of the elements represented in the criteria of selecting the auditor, auditor's independence, auditor's fees and professional specialization of auditor in improving effectiveness of external audit in Jordanian audit offices from the point of view of external auditors, the researchers adopted the analytical descriptive approach in this study.The most important findings of this study are that there is an existence of a positive impact of the independent study variables (combined and separated) in enhancing the effectiveness of external audit in Jordanian audit offices. This study presented many recommendations, the most important of these are: the auditors should exercise their profession in accordance with professional specialization and the need to provide the necessary legal protection for the external auditor to maintain his independence.