The Extent of Applying the International Internal Audit Standards by the Telecommunication Companies Operating in Jordan

Abstract

This study aimed to identify the extent of the application of International Internal Audit Standards by the telecommunication companies operating in Jordan. Generally, standards work as a framework for performing and promoting a broad range of value added functions. International Internal Audit standards establish the basis for the evaluation of internal audit performance in any organization. The study has covered three telecommunication companies in Jordan. A questionnaire has been designed and distributed among the internal auditors for this purpose and to the non-executive directors as they are members of the Audit Committee in each company. The number of questionnaires analyzed was 35 questionnaires. Resolution data were analyzed using the statistical program SPSS, in addition to other statistical methods through descriptive statistics, arithmetic means, standard deviations, and percentages. The study found that telecommunications companies are applying the International Internal Audit Standards IIA in general. Attribute Standards were mostly applied, then Application Standards were used in the second place but in a high degree. Performance Standards were not applied in those companies. Also the study discovered that there are some difficulties and obstacles that limit this kind of application, but moderately. The study recommended that these companies should increase the size and extent of Internal Auditing Standards in the telecommunication companies operating in Jordan, especially Performance Standards, which will lead of rising the efficiency and effectiveness of the internal audit and finally contribute to the improvement of risk management and create additional value for those companies.