Internal Audit Function Quality and Audit Committees’ Practices: Survey Evidence from Jordan

Abstract

The current study examines the extent to which audit committees comply with the requirements of corporate governance in Jordan and describes the current status of internal audit function. In addition, the study examines empirically the relationship between the internal audit quality and the compliance of audit committees with the governance requirements. The results from 49 respondents indicate that audit committees comply with the requirement of corporate governance and no significant difference is found in such compliance due to sector. In addition, the internal audit quality attributes are met among Jordanian companies to a considerable extent. Further, the independence and objectivity dimension of internal audit quality has a positive and significant relationship with the compliance of audit committees with governance requirements. Internal audit competence and due professional care have no significant relationship with audit committees compliance. One important implication of the current study is the development of a scale to measure the compliance level of audit committees with the governance requirements that can be used by both academics and decision-makers in firms.

Audit Service Quality Perceived by Customers: Formative Modelling Measurement Approach

“…The results of the research show that the level of the influence of a single quality dimension on audit service quality perception in comparison to other quality dimensions' influences differs to some extent. Such differences are also noticed in previous researches [2,3,46,50,53]. However, the specificity of this research is not only that all considered quality dimensions have significant, but also the positive influence on the perceived quality of audit services (that was the case only with Turk and Avcilar [2] as well).…”

“…The audit quality attributes and client satisfaction were investigated due to the client's sector. Hereby, Al Sawalqa [53] categorized all audit quality attributes in three factors: experience and responsiveness; field work conduct and technical competence; independence and executive involvement. The study conducted in Jordan indicated that clients' evaluations of audit quality attributes, as well as client satisfaction, did not differ due to the client's sector.…”

“…For measuring audit quality, satisfaction and loyalty, we used scales applied in previous researches. Attributes in relation to audit service quality (its five dimensions) and loyalty were taken from Ismail et al [3] while the measuring satisfaction variable was based on Al Sawalqa [53]. Hereby, 22 items were used for measuring perceived audit quality (3 for tangibles (T1-T3), 5 for reliability (R1-R5), 4 for responsiveness (Re1-Re4), 5 for assurance (A1-A5) and 5 for empathy (E1-E5)), 5 for satisfaction (S1-S5) and 4 for loyalty (L1-L4).…”

Innovation on University Governance: Collaboration Between Audit Committee and Internal Auditor

“…In addition, the compliance of the audit committee in carrying out its functions can improve good governance. One of the roles of the audit committee is to ensure the performance of the internal auditors so that if the audit committee works well, the internal auditors will also work well [22]. The collaboration between those parties can improve good university governance.…”