Internal Audit Governance Factors and their effect on the Risk-Based Auditing Adoption of Commercial Banks in Jordan

Introduction This paper aims to explore the impact of internal audit governance factors on the risk-based auditing adoption of commercial banks in Jordan. The population targeted in this paper were managers of the accounting and finance departments in the commercial banks listed on the Amman Stock Exchange. Methods Using the purposive sampling method, 339 responses were obtained in the final sample, which constituted a validity rate of 73.7%. Structural equation modeling (SEM) was adopted as a statistical approach for hypotheses assessment. Results The findings of this paper confirmed the positive impact of internal audit governance factors, including internal audit attributes, audit committee attributes, risk management system, and internal control system, on risk-based auditing adoption. Conclusion A set of recommendations was provided to bank managers, such as enhancing the Board's supervision and monitoring of the internal audit function's actions by encouraging Board members to grasp risk-based auditing thoughts and the value it delivers to the Bank.