The effect of the reliance on internal audit work and ethical rules on perceived audit quality: Evidence from Jordan

Yazan Yaseeb Alsmairat, Wan Sallha Yusoff, Mohd Fairuz Md. Salleh

Research output: Contribution to journalArticle

Abstract

The poor of audit quality and how to offer directives and policies to generate high-quality auditing has become one of the phenomenal challenges facing the accounting sector in Jordan. Thus, the purpose of this study is to examine the attributes (the reliance on internal audit work RIAW and the level of compliance toward ethical rules (LCER)) affecting audit quality AQ for Jordanian auditors. The data were collected through the distribution of questionnaires to 150 respondents in Jordanian auditors and processed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) software for the purpose of this study. The findings of the study show that there is a positive effect between LCER and AQ. On the other hand, RIAW indicates a negative and insignificant effect with audit quality. In addition, this study conducted robustness analysis by control the respondents based on Big 4 audit firms and non-big 4 audit firms. Based on the results, RIAW indicate positive and significant results for auditor from Big 4 audit firm but negative and significant results for auditors from non-big 4 audit firm. Furthermore, based on the demographic profile majority of the respondent is from non-big 4 audit firm, which could provide a unique result. The findings suggest that the non-big 4 audit firm must encourage the reliance on the internal audit work to improve audit quality in Jordan.

Original languageEnglish
Pages (from-to)511-522
Number of pages12
JournalInternational Journal of Economics and Management
Volume12
Issue number2
Publication statusPublished - 1 Jan 2018

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Audit quality
Jordan
Internal audit
Audit firms
Auditors
Big 4
Robustness analysis
Demographics
Structural equation modeling
Questionnaire
Level effect
Auditing
Partial least squares
Software

Keywords

  • Audit quality
  • Ethical rules
  • External audit
  • Jordan
  • Reliance on internal audit work

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Strategy and Management

Cite this

The effect of the reliance on internal audit work and ethical rules on perceived audit quality : Evidence from Jordan. / Alsmairat, Yazan Yaseeb; Yusoff, Wan Sallha; Md. Salleh, Mohd Fairuz.

In: International Journal of Economics and Management, Vol. 12, No. 2, 01.01.2018, p. 511-522.

Research output: Contribution to journalArticle

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