The Impact of the Implementation of Internal Audit Tasks According to Standard 2300 on the Efficiency of the Performance of Industrial Companies Listed on Amman Stock Exchange
DOI:
https://doi.org/10.26668/businessreview/2023.v8i9.3694Keywords:
Implementation of Tasks, Internal Audit, Standard 2300, Performance Efficiency, Industrial CompaniesAbstract
Purpose: To determine the impact of the implementation of internal audit tasks in according to standard 2300, with its dimensions (identifying information, analysis and evaluation, documenting information, supervising the task) on the efficiency of the performance of industrial companies listed on the Amman Stock Exchange, and to achieve the objectives of the study.
Methodology: The descriptive approach was used Analytical. The study population consisted of internal auditors in industrial companies listed on the Amman Stock Exchange, which numbered (56) companies, and the study sample consisted of (160) questionnaires distributed to workers in the job of (internal auditor, director of internal audit and head of the internal audit department) in the Jordanian industrial companies listed on the Amman Stock Exchange, from which (124) questionnaires were retrieved. In addition to (2) an incomplete questionnaire, all the information contained therein. Thus, the study sample consisted of 122 individuals. To test the hypotheses of the study, the researcher used the SPSS program ، through the simple regression test and the Three-way Anova test. The study reached results there is a statistically significant relationship to determine the information, analysis and evaluation on the performance efficiency of the industrial companies listed on the Amman Stock Exchange.
Findings: While showed, there is no statistically significant relationship to document information and supervise the task on the performance efficiency of industrial companies listed on the Amman Stock Exchange.
Further research: In view of the results, the study recommended the need to support the internal audit department in Jordanian industrial companies.and More studies are needed.
Downloads
References
Adam, Mustafa (2014) Evaluating the Financial Performance of Banks Using Financial Ratios- A Case Study of Erbil Bank for Investment and Finance, European Journal of Accounting Auditing and Finance Research, Vol.2, No.6, pp. 162-177.
Ahmad, A. B., Atta, A. A. B., Asma’a Al-Amarneh, M. S., & Dahbour, S. A. (2023). Fund Family Selectivity Skills and Market Timing Ability: Comparison Study.
Ahmeti, A., Ahmeti, S., Aliu, M (2022) Effect of Internal Audit Quality on the Financial Performance of Insurance Companies: Evidence from Kosovo, International Journal of Applied Economics, Finance and Accounting, Vol. 12, No. 2, pp. 63-68.
Aimoun, Bilal (2016) The role of internal auditing in improving the financial performance of the economic institution: a case study of the sanitary ceramics company scs - Al-Miliyah, master's thesis, University of Jijel, Faculty of Economic, Commercial and Management Sciences, Department of Commercial Sciences.
Al Khalifa, Rashid (2014) The impact of applying international internal auditing standards on the efficiency of financial performance in the banking sector in Qatar, Master Thesis, Amman Arab University, College of Business, Jordan.
Al-Dahabi, Warda, Ben Baya, Maimouna (2017) Internal audit and its relationship to the quality of performance in institutions: a case study of the Electricity and Gas Distribution Company in Adrar, University of Ahmed Derayah Adrar - Algeria, Faculty of Economic, Commercial and Management Sciences, Department of Economic Sciences.
Al-Haddad, Haifa, Ali, Moqbel (2005), Evaluating the efficiency of financial performance using data and financial indicators for a sample of mixed joint-stock companies in Nineveh Governorate, Tanmiat Al-Rafidain Journal, Issue 80 (27), pp. 159-173.
Al-Hallaq, Sami, and Al-Ajlouni, Muhammad (2010), Economic Feasibility Study and Project Evaluation, Edition (1), Amman: Dar Al-Yazuri Scientific.
Ali Alsheikh GA, Binti Abd Halim MS, Ayassrah AYA, Theeb Alnawafleh EA, Bin A Tambi AMS. (2018) Investigation of Factors Influencing Customer Loyalty in Malaysia and Jordan Hotel Industry. J Hotel Bus Manage 7: 181. doi: 10.4172/2169-0286.1000181
Al-Khisi, Abdel-Basset Ahmed (2013) The extent to which the internal audit function contributes to controlling the financial and administrative performance in the local government bodies in the Gaza Strip: an applied analytical study. Unpublished master's thesis, Gaza, Gaza Islamic University.
Al-Lami, Mustafa (2020) The impact of internal auditing on improving the financial performance of the financial department in the Greater Salt Municipality during the time period 2019-2020, Ramah Journal for Research and Studies, Center for Research and Human Resources Development - Ramah, p. 50, pp. 365-395.
Al-Modalal, Youssef (2007) The Role of Internal Audit in Controlling Financial and Administrative Performance, (Master's Thesis), Islamic University, Gaza.
Al-Mutairi, Ali Manea (2012) The role of electronic accounting information systems in improving the measurement of credit risk in Kuwaiti banks: a field study. (Unpublished Master's Thesis), Middle East University, Amman, Jordan.
Alnsour, I., Alghadi, M., Ahmad, A., Alibraheem, M., Altahat, S., Al-Smadi, R., & Alshboul, K. (2023). Islamic financial technology acceptance: An empirical study in Jordan. International Journal of Data and Network Science, 7(4), 1659-1668.
Al-Qaisi, Fawzan (2017) Analysis of factors affecting the performance of commercial banks using the CAMELS model: an applied study on Jordanian commercial banks during the period 2009-2014, Jordanian Journal of Business Administration, Volume 13, Number 4. ,
Al-Shrouf, Majed (2021) The Impact of Applying Internal Audit Standards on the Financial Performance of Companies Listed on the Palestine Stock Exchange: The Modifying Role of Company Characteristics, Ph.D. Thesis, International Islamic Science University, College of Graduate Studies, Jordan.
Al-Taweel, Issam (2009) The extent of the effectiveness of the internal audit systems in the Palestinian universities in the Gaza Strip in light of the international internal audit standards: an applied study, master's thesis, Islamic University, Faculty of Commerce, Department of Accounting and Finance, Palestine (Gaza Strip).
Alwani, Sufyan. (2018). The role of internal auditing in improving the financial performance of the economic institution: a case study of the Sonelgaz Corporation, the Umm El-Bouaghi unit. Master's thesis, Department of Accounting and Financial Sciences, Faculty of Economics, Commercial Sciences and Management Sciences, University of Oum El-Bouaghi
Al-Yasiri, Ihsan., Mohsen, Iktifah. (2019). The impact of internal auditing on improving the performance of the Central Bank of Iraq. Journal of Accounting and Financial Studies, 14 (46), 156-167.
Al-Ziyadi, Naim (2015) The impact of creative accounting methods on the credibility of the financial statements: an applied study, Al-Qadisiyah Journal of Administrative and Economic Sciences, Vol. 17, p. 2, pp. 191-220.
Al-Zoubi, Jamal (2019) The Impact of Implementing International Internal Audit Standards on Improving the Profitability of Commercial Banks Listed on the Amman Stock Exchange “An Analytical Field Study”, Master’s Thesis in Accounting, Graduate School, Zarqa University, Jordan.
Awad, Azmy (2020) Evaluating the efficiency of the performance of Palestinian commercial banks compared to the performance of foreign commercial banks using financial data and market share indicators - a case study of Bank of Palestine and the Arab Bank - Palestine Technical University, Palestine.
Bani ahmad , Ahmad A. Y.(2013).The Ability of Accounting Information Systems to support Profitability and Growth (Industrial Sector-Jordan Companies)European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.19, 2013
Bani ahmad , Ahmad, A. Y. (2019). Empirical Analysis on Accounting Information System Usage in Banking Sector in Jordan. Academy of Accounting and Financial Studies Journal, 23(5), 1-9.
Bani Ahmad, Ahmad Yahya, Nawwaf Hamid Alfawaerah, Anas Al-Qudah, Mahmoud laham. The Governance Capability to Support Accounting & Financial Disclosure in the financial Statements (Case Study – Industrial Sector) , Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.10, 2013
Bshayreh, M.M., Tawaha, M.S., & Al-Khasawneh, R.O.H. (2019). The effect of electronic management in improving the quality of internal audit through developing the performance of internal auditor: An empirical study in the Jordanian insurance companies. Academy of Accounting and Financial Studies Journal, 23(5), 1-10
Dagha, Eman, Annan, Rahma (2019) The role of internal audit in activating the internal control system: a case study of the Sonelgaz Ouargla Foundation, Master Thesis, Kasdi Merbah University, Ouargla - Algeria, Faculty of Economic Sciences, Commercial Sciences and Management Sciences, Department of Finance and Accounting.
Ejoh, N. O. & Ejom , P. E. (2014). The Effect of Internal Audit Function on the Financial Performance of Tertiary Institutions in Nigeria. International Journal of Economics, Commerce and Management II (10), 1.
Essam, Abbasi (2012) The impact of the quality of financial information in assessing the financial performance of the economic institution and decision-making, unpublished master's thesis, Kasdi Merbah Ouargla University, Ouargla, Algeria.
Fraihat, B. A. M., Ahmad, A. Y. B., Alaa, A. A., Alhawamdeh, A. M., Soumadi, M. M., Aln'emi, E. A. S., & Alkhawaldeh, B. Y. S. (2023). Evaluating Technology Improvement in Sustainable Development Goals by Analysing Financial Development and Energy Consumption in Jordan. International Journal of Energy Economics and Policy, 13(4), 348.
Ghaidan, Faisal, Al-Dhiba, Ziyad (2019). The impact of applying international internal auditing standards on earnings management in Jordanian industrial companies listed on the Amman Stock Exchange (unpublished master's thesis), Zarqa University, Jordan.
Gomaa, Ahmed Helmy. (2009), Contemporary Trends in Auditing and Verification, First Edition, Amman: Dar Safaa for Publishing and Distribution.
Hamed Nour El-Din, Amara, Maryam (2016) Internal auditing of fixations in economic institutions, Dar Zahran for Publishing and Distribution, first edition, Amman, Jordan.
Hammoud, M., Al-Karawi, A (2019) The importance of internal auditing on the quality of accounting information in the financial statements, a case study in the Central Bank of Iraq / Baghdad, Al-Kout Journal of Economics and Administrative Sciences, (11) 34, 30-47, reviewed from Through: https://kjeas.uowasit.edu.iq/index.php/kjeas/article/view/214
Hussain, Muhannad (2015) The Impact of Audit Committees on Improving the Quality of Earnings from Jordanian Industrial Public Shareholding Companies “A Field Study on Jordanian Public Shareholding Industrial Companies”. Accounting Department, College of Business, Middle East University, unpublished master's thesis.
Ibdah, Alaa (2020) Al-Awsat, The Impact of Bank Credit Risk Management on Financial Performance in Jordanian Commercial Banks, Master's Thesis in Accounting, Department of Accounting, Financial and Banking Sciences, College of Business, Middle East University, June.
Ibrahim, Shaima Mohamed (2013) Integration between the work of the internal auditor and the external auditor to reduce financial corruption, Future Research Journal, (41), 121-168.
International Standards for the Professional Practice of Internal Auditing (Standards), available through: https://www.theiia.org
Juma, Ahmed (2011) Internal and Governmental Auditing, 4th Edition, Dar Safaa for Publishing and Distribution, Amman-Jordan.
Kaneza, Carelle (2016) Factors Affecting the Financial Performance Of Commercial Banks Listed On the Nairobi Securities Exchange UNITED STATES INTERNATIONAL UNIVERSITY - AFRICA SPRING.
KANT, (2020) The Impact Of Internal Audit Efficiency On The Financial Performance Of Companies (A Case Study Of Julius Berger Plc) premiumresearchers , ACCOUNTING UNDERGRADUATE PROJECT TOPICS , Review from: https://www.premiumresearchers.com/internal-audit-efficiency-on-financial/
Kayode, Alashe & Oyeshola, Bello (2021) THE IMPACT OF INTERNAL AUDIT ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA, African Journal of Accounting and Financial Research, Volume 4, Issue 3 (pp. 139-149).
Khan, Y.; Su’ud, M.B.M.; Alam, M.M.; Ahmad, S.F.; Ahmad (Ayassrah), A.Y.A.B.; Khan, N. Application of Internet of Things (IoT) in Sustainable Supply Chain Management. Sustainability 2023, 15, 694. https://doi.org/10.3390/ su15010694 .
Korma , Gizachew (2021) The Effect of Internal Audit on Financial Performance of Company; The Case of Ethiopian Airlines Group , Ph.D , College of Business and Economics , Addis Ababa Uiversity Libraries , Ethiopia.
Manati, Alaa. (2015). The impact of compliance with international internal auditing standards on the efficiency of the financial performance of the Jordanian shareholding industrial companies listed on the Amman Stock Exchange. Master's thesis, Department of Accounting, Faculty of Business, Middle East University, Jordan.
Massad, Muhammad Fadl and Al-Khatib, Khaled Ragheb (2009) an in-depth study in auditing. 1st edition, Amman: Dar Treasures Knowledge Knowledge for publication and distribution.
Matar, Muhammad (2016), Financial and Credit Analysis Methods, Tools and Practical Uses, Fourth Edition, Dar Wael for Publishing and Distribution, Amman - Jordan.
Melhem, Omar (2019) Factors Affecting Financial Performance in Public Shareholding Insurance Companies Listed in the Amman Financial Market, Master's Thesis in Accounting, Department of Accounting and Finance, College of Business, Middle East University.
Miller , K. , Bromiley , P. , (1991) Strategic Risk and Corporate Performance: An Analysis of Alternative Risk Measures , The Academy of Management Journal , Vol 33 , N 4 , p 758-779.
Moeller, R. (2005). Brink's modern internal auditing, (7th ed.), NewJersey: John Wiley & Sons.
Muslih , Mochamad (2022) THE EFFECT OF INTERNAL AUDIT AND AUDIT COMMITTEE TO FIRM PERFORMANCE MODERATED BY FIRM AGE , South East Asia Journal of Contemporary Business , Economics and Law , Vol. 25 , Issue 1 , pp 2289-1560.
Naqaz, Ahmed, Abeerat, Moqaddam (2007) Internal audit as an effective tool in decision-making: a case study of the pharmaceutical manufacturing institution (saaidal), Arab Open Academy in Denmark, Volume: 2007, Issue 2, p. 28.
Sheikh, Fahmy (2008). Financial analysis, first edition, Amman: Dar Al-Hamid for distribution and publishing
Thuneibat, Nawaf (2011) The impact of the financial performance of companies listed on the Amman Stock Exchange on the opinions of external auditors in Jordan (analytical study) Master's thesis in Accounting, Department of Accounting, Faculty of Business, Middle East University.
Wang, C., Ahmad, S. F., Ayassrah, A. Y. B. A., Awwad, E. M., Irshad, M., Ali, Y. A., ... & Han, H. (2023). An empirical evaluation of technology acceptance model for Artificial Intelligence in E-commerce. Heliyon, 9(8).
Yakhlef, Safia, Al-Jabour, Ali (2019) Requirements for improving the quality of internal auditing in order to establish the proper application of corporate government, Journal of Management and Economic Research, Volume 1, Number 2, pp. 88-105.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html
