A Comparative Analysis Of Internal And External Auditing Practices In The Jordanian Private Sector

Abstract

This study aimed to perform a comparative analysis of internal and external audit practices in the Jordanian private sector. Using a sample of 564 individuals from 144 firms, the researchers classified the various audit practices into the main categories that have been previously identified to impact the quality of audit-proficiency, independence and reputation. Consequently, the study found that both the internal and external auditors did not have the technically competent personnel to execute audit roles, were not independent and did not possess the expected standards of reputation. These aspects indicate that in the Jordanian private sector, internal and external auditors are influenced by the management. Implicitly, these results indicate a lack of understanding of the guiding principles that govern the audit profession as well as the roles of internal and external auditors in the firm setup. Consequently, it can be inferred that the quality of audit reports written by auditors in the private sector in the Jordanian economy is relatively lower, diminishing the prospects of their reliability in decision-making.