Extrinsic Factors Influencing Internal Auditors’ Effectiveness in Jordanian Public Sector

Alqudah, Hamza; Amran, Noor Afza; Hassan, Hasliza

doi:10.5539/res.v11n2p67

Cited by 19 publications

(9 citation statements)

References 29 publications

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“…In doing so (as shown in Table I), 11 items (23 per cent) were removed and 36 items were retained for the model. Deleting some items is considered normal and common in the majority of studies that use questionnaires (Alqudah et al , 2019; Alshirah, 2018; Ayuba et al , 2016; Hair et al , 2016). With regards to CR, all investigated variables exceed the expected value of 0.7.…”

Section: Discussionmentioning

confidence: 99%

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Alqudah

Amran

Hassan

2019

EMJB

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Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

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Section: Discussionmentioning

confidence: 99%

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Alqudah

Amran

Hassan

2019

EMJB

Self Cite

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“…For job titles, (34%) of respondents were Human Resources' Managers, (29%) were Production Managers, (20%) were Financial Managers, and (17%) were IT Managers. As a result, the demographic information about the respondents underscores their substantial knowledge and experience, making them well-suited to partake in the survey and provide reliable data for this study (Al Qudah, Osman & Al Qudah, 2014;Alrfai et al, 2023;Alghadi et al, 2023;Alqudah, Amran & Hassan, 2019b).…”

Section: Methodsmentioning

confidence: 99%

“…Further, Elton, Gruber, and Blake (2003) argue that companies possessing significant assets typically bear lower risk than those with fewer assets, attributed to their improved access to capital markets, resulting in superior performance relative to smaller firms. Conversely, smaller firms may find that digital proficiency can help them implement more cost-effective and readily scalable ERP solutions (AboAbdo et al, 2019;Alqudah, 2023b;Zaqeeba et al, 2024) (Fig. 1).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Consequently, many firms have been prompted to explore swift and effective solutions that foster success and sustainability, foster business development, enhance adaptability to their surroundings and equip them to compete effectively against other firms, whether within their respective industries or in supportive roles (Almaiah et al, 2022c;Almajali et al, 2022). These solutions aim to create new advantages through speed, precision, and the harmonious integration of the company's systems (AlQudah, 2015;Lutfi, 2021). In light of these challenges, the concept of an enterprise resource planning (ERP) system has emerged (Zamzeer et al, 2020;Abu Afifa, Saleh & Vo Van, 2023).…”

Section: Introductionmentioning

confidence: 99%

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Technology factors and ERP system efficiency in the Jordanian industrial firms: does company size matter?

Lutfi,

Alqudah,

Al-Daoud

et al. 2024

Humanit Soc Sci Commun

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The study was structured to investigate the impact of technological factors on the effectiveness of enterprise resource planning (ERP) in Jordanian industrial firms, using a descriptive-analytical approach. This study also examines company size as a moderator variable, which has been measured using the logarithm of total assets extracted from each firm’s annual report. The study’s target population consisted of all Jordanian industrial firms listed on the Amman Stock Exchange, totaling 55 firms. Managers participated as respondents, with 220 questionnaires distributed electronically, averaging four questionnaires per company. After data collection, 92 valid questionnaires were used for statistical analysis. The findings indicate a significant and positive relationship between technological factors (such as ease of use, perceived usefulness, and digital proficiency) and ERP system effectiveness in Jordanian industrial firms. However, the study revealed that trust, as one of the technological factors, did not significantly impact ERP system efficiency. Additionally, it was found that the moderating role of company size moderates positively the relationship between two technological factors (i.e., perceived usefulness and digital proficiency), and ERP system efficiency. The research suggests that industrial firms in Jordan should take into account technological factors, including factors like ease of use, perceived usefulness, and digital proficiency, to remain current with advancements that can improve the efficiency of ERP systems. This is important due to the positive influence it can have on the operational effectiveness of Jordanian industrial companies, aiding them in their planning and decision-making processes.

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“…Our Questionnaire was adopted (Alqudah, Amran, & Hassan, 2019;Alzeban & Gwilliam, 2014). In total, 480 survey questionnaires were circulated on a convenience basis.…”

Section: Population Survey Questionnaire and Measures Of Variablesmentioning

confidence: 99%

Impact Evaluation of Factors of Internal Audit on Intrnal Audit Effectiveness: The Moderating and Mediating Effect of Ethical Culture and Internal Controls

Shah

Azmat

Rasheed

et al. 2023

Pak. J. Humanit. Soc. Sci

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The objective of this paper is to investigate the impact of independence, management support and external auditors’ cooperation on Effectiveness of Internal Audit. It also investigates the moderating effect of ethical culture and mediating effect of internal controls, between major factors of internal audit (independence, management support and external auditors’ cooperation) and Effectiveness of Internal Audit in private sector of Pakistan. Cross-sectional design was used in this study. Four hundred and eighty (480) questionnaires were distributed among the auditors in the chartered accountants’ firms of Pakistan situated in Lahore on convenience basis. Sixty-one (61) indicators were measured on five-point Linkert scale from one which refers to strongly disagree to five which denotes strongly agree. PLS-SEM is used for the analysis of the data. The results show that there is positive relationship between two factors of internal audit (independence and external auditors’ cooperation) and internal controls while the third factor, management support has no relationship. Moreover, the findings show that ethical culture has no moderating effect on the association between internal control system and internal audit effectiveness. Similarly, internal controls positively mediate the relationship between two factors of internal audit (independence and external auditors’ cooperation) and Effectiveness of Internal Audit. Moreover, it demonstrates the value of independence and the collaboration of external auditors in enhancing the efficiency of internal auditing and business performance. The results of this study will direct business entities and other organizations to improve the internal controls for enhancing the effectiveness of internal audit and focus on independence of IAD and external auditors’ cooperation with internal auditors as these factors are very important for getting results from internal audit department in order to achieve goals.

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Extrinsic Factors Influencing Internal Auditors’ Effectiveness in Jordanian Public Sector

Cited by 19 publications

References 29 publications

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Technology factors and ERP system efficiency in the Jordanian industrial firms: does company size matter?

Impact Evaluation of Factors of Internal Audit on Intrnal Audit Effectiveness: The Moderating and Mediating Effect of Ethical Culture and Internal Controls

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