Effectiveness of Auditing in Combating Financial Corporate Corruption in Jordan from Managers’ Perspectives
Keywords:Audit Effectiveness, Audit in Jordan, Combating Corruption.
AbstractThe study aims at investigating the effectiveness of auditing in curbing financial corruption in Jordanian companies. Research methodology is descriptive and analytical mainly based on primary data from structured interviews with a convenient sample of corporate managers in Jordan. The study concluded that fraud, bribery, tax evasion and forging data are the most prevailing types of corporate corruption; auditors' responsibility to fight corporate corruption mainly stems from their professional ethics and social responsibility more than legal obligation; auditing measures were inadequate for combating corporate corruption; low level of auditing effectiveness exists due to obstacles facing auditors such as lack of mandate, lack of incentives, lack of appropriate training and threats to auditors. The researcher recommends that the best course of action to combat corporate corruption in Jordan is through joint efforts of internal control, external auditing, official mandate, more incentives and better training to auditors to reveal and report cases of corporate corruption in Jordan.
Abdelrahim, Khalil Elian (2013) Socio-economic Dimensions, Causes and Curbing Measures of Corruption in Developing Economies with A Special Reference to Jordan. International Journal of Business and Social Research (IJBSR), Volume -3, No.-10, October, 2013.
Abu Ihmad, Syam Walid (2006) Extent of Adherence of Auditors in Jordan to Professional Rule Behavior: An Empirical Study. King Abdelaziz University Journal, no.2. vol. 20 pp: 199-248.
Alshanawani, Ghyath (2004) Role of Auditors in Eradicating Robbery and Manipulation: The Cases of Economic Security at Damascus Court. Accounting Thesis, Damascus University.
Burcu, Gidiz Oral & Ferhan Sayin (2015) Can Corruption be prevented by Increasing Tax Auditing in Turkey? Journal of Economic Cooperation and Development, 36,1 (2015), 1-32.
Burke, Ronald J., Edward C. Tomlinston and Cary L. Cooper (2011) Crime and Corruption in Organisations: Why It Occurs and What to Do About It, Gowar Publishing Ltd. New York.
Center of Strategic Studies (2001) Report on Institutions concerned with fighting corruptions in Jordan. University of Jordan. Amman.
Culpan, R (1990) The Corruption of the Bureaucratic system. Journal of Public Administration.Vol. 13, No.2; 31-45.
Dahdouh, Hussein (2006) Responsibility of Auditor in Detecting Manipulation at Jordanian Industrial Companies' Financial Statements. Damascus University Journal of Economic and Legal Studies, vol. 22. No.1, pp: 173-212.
http://www.jordantimes.com/news/local/jordan-ranks-57th-out-176-countries-public-sector-corruption, dated 24-2-2018.
International Monetary fund (IMF) (2017) World-Wide Corruption, September 20, Washington DC.
Rohana Othmana, Nooraslinda Abdul Arisb, Ainun Mardziyaha and Noralina Md Amin (2015) Fraud Detection and Prevention Methods in the Malaysian Public Sector: Accountants’ and Internal Auditors’ Perceptions. Accounting Research Institute, University Teknologi, Malaysia.
Shamyeh, Yusran Mohamed Syam (2008) Role of Auditing Profession in fighting Corruption in Syria: An Empirical Study. Master Degree Thesis, Faculty of Economics. Damascus University.
Transparency International Organization (2017) Transparency International Report. Berlin.
World Bank (2017) Corruption Percentile Rank in Control of Corruption. Washington DC.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).