The Impact of Business Risks Audit Approach on the Quality of Internal Auditing – An Empirical Study on Jordanian Commercial Banks.

The objective of this study is to investigate the impact of the business risk audit approach on the quality of internal auditing in Jordanian commercial banks. To achieve the objective of the study, a questionnaire of 36 items was designed to collect data on the business risk audit methodology and its impact on the quality of the internal audit, then analytical descriptive approach was applied. The sample frame consists of all 525 individuals working in supervisory and controller positions in 13 Jordanian commercial banks. A simple random sample was extracted, where 350 questionnaires were distributed, of which 290 were analyzed. At the level of significance α ≥0.05, the results of the study show a statistically significant effect of the business risk based audit methodology (external environmental risk, operational risk, information risk) on the quality of internal auditing in its combined dimensions in the Jordanian commercial banks. One of the main recommendations of the study is the need to provide the necessary skills for the internal auditors in the Jordanian commercial banks to apply the audit based on business risks, and the need to encourage the staff of the Internal Audit Department of Jordanian commercial banks to obtain professional certificates to improve the quality of their performance.