The Internal Auditing Procedures Effectiveness in Using Accounting Information System to Assess Fraud in Jordanian Commercial Banks

Abstract

Accounting information system (AIS) is critical for managing financial data as well as assets of a bank. However, just as any IT system, AIS faces risks of an information breach, data manipulation, fraudulent entries, system hacks or a takeover aside from common issues like server downtime for cloud-based systems. This study aims at determining the internal auditing procedures effectiveness in using accounting information system to assess fraud in Jordanian commercial banks and the role of management in achieving it. This study utilizes descriptive approach. A questionnaire with 48 items was designed and distributed to 248 commercial banks, internal auditors. Out of the 120 retrieved questionnaires only 104 were considered valid for the analysis. Collection and analysis of data were done statistically. The results show that the commercial banks' internal auditing program consists of procedures that achieve the internal audit procedures and the role of management ensured internal auditing effectiveness of the information systems.