Rana M. Airout
This research intended to identify the influence of internal control systems on the external audit procedures in the Jordanian business environment. Specifically, to investigate the impact of control systems (accounting, managerial and internal control) on the effectiveness of external audit procedures, representing by four main audit aspects (including the planning for the audit process, developing audit testing procedures, risk assessments, and implementation of the audit plan). This study uses the questionnaire to gather data to test the relationship between internal control systems and external audit procedures. This research focuses mainly on the Jordanian external auditors' point of view regarding these control systems' influence on the external audit procedures. Data were analyzed employing inferential and descriptive statistics. The research hypotheses were tested using one-sample t-test. Based on 64 valid questionnaires, the findings of the study results show that internal control systems do contribute significantly toward improving the effectiveness of various external audit procedures. The main findings illustrate that the internal control system is the most vital monitoring factors; it has a significant influence on external audit procedures. Moreover, the participants perceived that internal control; accounting and managerial systems play an essential role in enhancing the quality of audit procedures especially their role in conducting a risk assessment. Moreover, the descriptive and inferential findings demonstrate that the influence of the internal control systems over the planning for the audit process was the most important monitoring system. The internal control systems have impact on developing the audit plan, the audit plan tests and risk identification. The findings also suggest that accounting control systems influence the external audit procedures in Jordanian companies that can assist in improving different procedures of external audit. This indicates that the auditors should be aware of the dynamic role of particular internal control systems to enhance the procedures of external audit. The research findings consistent with the Jordanian set of laws, such as JCGC which highlights the significance role of these systems on the control environments and audit processes. The research findings have practical implications for the policymakers, including (board of directors and external auditors). This research recommends that control systems should exert more assurance in monitoring the control environment and external audit process.