The Role of External Audit in View of Sudden Financial Collapses on the Jordanian Commercial Banks Sector

Abstract

The study aims to determine the role of external audit in view of sudden financial collapse son Jordanian commercial banks. To achieve this, the researcher designed a questionnaire consists of (40) paragraphs.

The study results show that there is a statistically significant impact (the first hypothesis) of external audit on sudden financial collapses on Jordanian commercial banks. The value of the relationship between the two variables is 0.638 which is statistically significant, because calculated f value is equal to (75.31) which is statistically significant as (0.000) value, which is less than (5%).

The study also indicates that there is a statistically significant effect (the second hypothesis) of external audit on the compliance of the audit profession rules on Jordanian commercial banks. The value of the relationship between the two variables is 0.615 which is statistically significant, because calculated f value is equal to (60.09) which is statistically significant as (0.000) value, which is less than (5%).

The findings suggest that there is a statistically significant effect (the third hypothesis) of external audit on the detection of deception and fraud on Jordanian commercial banks. Where the value of the relationship between the two variables is (0.673) which is statistically significant, because calculated f value is equal to 91.07 which is statistically significant as (0.000) value, which is less than (5%).