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The Impact of Electronic Audit Procedures on the Quality
of Financial Reports in Jordanian Commercial Banks
in Light of Corporate Governance
AHMAD OBEID1, JAMAL AL SHARIREH2, ANAS AL HADID3,
MOHYEDIN HAMZA4, and HOSSAM HADDAD3
1 Lecturer, Zarqa University, Faculty of Economics and Administrative Sciences, Accounting Department, Zarqa, Jordan,
e-mail: aobeid@zu.edu.jo
2 Professor, Al al-Bayt University, Faculty of Business, Accounting Department, Mafraq, Jordan,
e-mail: dr_jamalalsharairi@aabu.edu.jo
3 Associate Professor, Zarqa University, Faculty of Economics and Administrative Sciences, Marketing and social media Department,
Zarqa, Jordan, e-mail: Aalhadid@zu.edu.jo
4 Professor, Zarqa University, Faculty of Economics and Administrative Sciences, Accounting Department, Zarqa, Jordan,
e-mail: Mhamza@zu.edu.jo
5 Assistant Professor, Zarqa University, Faculty of Economics and Administrative Sciences, Accounting Department, Zarqa,
Jordan, e-mail: Hhaddad@zu.edu.jo
A R T I C L E I N F O
A B S T R A C T
Received May 07, 2024
Revised from June 06, 2024
Accepted July 06, 2024
Available online July 15, 2025
This research aimed to identify the impact of electronic audit procedures in
all their dimensions, which are (planning the audit process, examining and
evaluating the internal control system over electronic operation, evidentiary
evidence in terms of adequacy and timing of obtaining it, documenting elec-
tronic audit procedures, identifying electronic audit samples) on the quality
of financial reports in Jordanian commercial banks in light of corporate gov-
ernance The descriptive analytical approach was followed for the study, and
to achieve the primary objective of the study, a questionnaire was developed
and distributed to (13) Jordanian commercial banks, and (170) question-
naires were distributed to those working in the field of accounting and au-
diting. (143) questionnaires were retrieved, with a percentage of (84%) of
the fully distributed banks, and (9) questionnaires were excluded due to in-
complete filling out (6%). The data was processed using the Statistical Pack-
age for the Social Sciences (SPSS) program, such as the Pearson correlation
coefficient, Cronbach alpha test, multiple regression test, and hierarchical
regression test The research reached several results, most notably: com-
mercial banks interested in electronic auditing procedures, by paying atten-
tion to all dimensions of electronic auditing, and the presence of a positive
impact of institutional governance on the quality of financial reports in com-
mercial banks. Based on the results, it recommends increasing the interest
of Jordanian commercial banks in electronic auditing procedures to in-
crease the quality of its financial reports, and the necessity of using modern
technological means and methods and electronic auditing techniques in the
audit process.
JEL classification: M42, G32, G34, K40
DOI: 10.14254/1800-5845/2025.21-3.17
Keywords:
Electronic Audit Procedures,
Quality of Financial Reports,
Corporate Governance,
Jordanian Commercial Banks
ELIT
Economic Laboratory Transition
Research Podgorica
Montenegrin Journal of Economics
For citation:
Obeid, A., Al Sharireh, J., Al Hadid, A., Hamza, M., Haddad, H. (2025), “The Impact of
Electronic Audit Procedures on the Quality of Financial Reports in Jordanian
Commercial Banks in Light of Corporate Governance”,
Montenegrin Journal of Economics, Vol. 21, No. 3, pp. 225-236.
228
INTRODUCTION
The increase in cases of fraud and administrations' tampering with financial statements has led to
many material losses for users of financial statements the increasing ability of administrations to exploit
loopholes in accounting standards applied in various parts of the world and use them to present financial
statements in a way that serves their interests has led to changes A radical approach to the auditing pro-
fession and its practice (Yusran, 2023). Auditing methods and procedures have been developed to suit
the extent of responsibility and complexity by the technological development in the introduction of infor-
mation technology in all fields until the use of information technology became a competitive advantage for
some organizations different from each other). The science of accounting and auditing, as well as other
fields, has been affected by technological development, It is worth noting that accounting and auditing do
not change the way data is operated and processed, whether manually or electronically In light of the rapid
development of the auditing process, there is a need for the auditing process and procedures of commer-
cial banks to be effective, and for auditors in general and internal auditors in particular to possess skills
capable of dealing electronically, so that auditors are used with a degree of competence and professional
qualifications and have sufficient readiness to develop a strategy for the auditing process Alwan, and Bou-
gatef (2024). internal procedures to ensure continuity, as the audit process has witnessed an increase in
technological developments, As a result, what is called computerized systems auditing, computer auditing,
or electronic auditing emerged Auditing programs have provided auditors with many techniques and meth-
ods that help detect fraud and fraud easily and simply Electronic data auditing is a process based on
exploiting modern technology to ensure that financial data have been entered. It also has many ad-
vantages, including speed in completing the audit process, increasing confidence among external parties
in the fairness of the auditor’s report, in addition to saving time and effort for the auditor and the client,
and other advantages Sugeng, et al. (2023).
The quality of financial reports is also an important topic at present due to the financial corruption
faced by many companies at the local and international levels From this standpoint, and in the presence
of internal and external influences, the company’s management influences the accounting numbers con-
tained in the financial reports To achieve its purposes, as it misleads accounting information, reduces its
quality, and presents a different perspective on the company’s true economic and financial reality Sugeng
et al. (2023). Hence, the study came to show the impact of electronic auditing procedures on the quality
of financial reports in Jordanian commercial banks in light of corporate governance. Auditing in the elec-
tronic auditing environment is more realistic in light of the large business volume of Jordanian commercial
banks because the business base has expanded significantly in light of governance, which has led to the
introduction of more modern technologies associated with processing financial data more accurately and
quickly and reducing the work time required to complete the process Auditing Al-Dalaien et al. (2023).
Accordingly, financial reports are considered the outcome of the work of any facility, whether industrial
or service. Jordanian commercial banks are interested in issuing financial reports in a clear manner that
reflects the real situation of the bank Al Dabbas (2023). To achieve this, bank departments are working to
carefully audit their accounts to reflect their true financial situation, relying on modern methods and tech-
nology Modern accounting auditing processes are within the standards of transparency and objectivity that
represent the quality of their financial reports Hence, the problem of the study lies in knowing the impact
of electronic auditing procedures on the quality of financial reports in Jordanian commercial banks under
corporate governance. The study seeks to answer the following questions: The first main question: Is there
an impact of electronic audit procedures in all its dimensions (planning the audit process, examining and
evaluating the internal control system over the electronic operation, evidentiary evidence in terms of ade-
quacy, timing and obtaining it, documenting electronic audit procedures, identifying electronic audit sam-
ples) on the quality of financial reports in banks? Jordanian commercial? The following sub-questions
emerge from the main question:
A - Is there an impact of planning the audit process on the quality of financial reports in Jordanian
commercial banks?
B - Is there an impact of examining and evaluating the internal control system on the quality of financial
reports in Jordanian commercial banks?
229
C - Is there an impact of evidentiary evidence on the quality of financial reports in Jordanian commercial
banks?
D - Is there an impact of documenting electronic audit procedures on the quality of financial reports in
Jordanian commercial banks?
E - Is there an impact of specifying electronic audit samples on the quality of financial reports in Jorda-
nian commercial banks?
The second main question: Is there an impact of corporate governance on the quality of financial state-
ments in Jordanian commercial banks? The third main question: Is there an impact of electronic audit
procedures on the quality of financial reports in Jordanian commercial banks under corporate governance?
Objective study. This study aimed to determine the impact of electronic auditing procedures on the
quality of financial reports in Jordanian commercial banks in light of corporate governance. Statement of
the impact of electronic audit procedures in their dimensions (planning the audit process, examining and
evaluating the internal control system for electronic operation, providing evidence in terms of its adequacy,
timing and obtaining it, documenting electronic audit procedures, identifying electronic audit samples) on
the quality of financial reports in Jordanian commercial banks, Explaining the impact of corporate govern-
ance on the quality of financial statements in Jordanian commercial banks and Explaining the impact of
electronic auditing procedures on the quality of financial reports in Jordanian commercial banks in light of
corporate governance. In light of the background of the problem, its various aspects, the research ques-
tions, and the objectives that the research seeks to achieve, the following hypotheses were formulated:
The first main hypothesis: H01: There is no effect of electronic audit procedures in all its dimensions
(planning the audit process, examining and evaluating the internal control system over the electronic op-
eration, obtaining and obtaining evidence in terms of adequacy and timing, documenting electronic audit
procedures, identifying electronic audit samples) on the quality of financial reports in Jordanian commer-
cial banks. The second main hypothesis: H02: There is no effect of corporate governance on the quality of
financial statements in Jordanian commercial banks. The third main hypothesis, H03: There is no effect of
electronic audit procedures on the quality of financial reports in Jordanian commercial banks under corpo-
rate governance. Figure 1 shows the study model for the study’s variables, dimensions, and hypotheses:
Electronic audit procedures
Figure 1. Conceptual framework
Source: own
Corporate governance
Dependent variable
Independent variable
Quality of
financial reports
Mediating
variable
H02
H03
Planning the audit process
Examining and evaluating the internal
control system for electronic operation
Proof of evidence in terms of
sufficiency and timing of obtaining it
Documenting electronic audit procedures
Identify electronic audit samples
H01
230
1. LITERATURE REVIEW
1.1 Electronic auditing
It is known as a detailed review of accounts that enables auditors to be aware of their responsibilities
through the possibility of obtaining and retrieving information quickly and simultaneously (Al-Taee et al.,
2023) defined electronic auditing as the application of any type of system using information technology to
assist the auditor in planning, controlling, and documenting audit work. Electronic auditing is defined as
the use of computers and software in the field of auditing to help auditors examine and analyze financial
data (Kane et al., 2023).
Electronic auditing has characteristics that distinguish it from manual auditing, such as efficiency and
effectiveness: The electronic auditing process provides services to auditors and meets their needs, and
this is achieved through the use of electronic auditing programs The efficiency and effectiveness of the
auditing process are defined in terms of its ability to achieve goals and carry out its responsibilities with
credibility, confidence, accuracy, and in the shortest time The use of information technology improves ef-
ficiency, and effectiveness (Ibid.).
1.2 Electronic audit procedures
Planning is considered one of the basic matters in the audit process, and an important requirement
based on international auditing standards, which is one of the standards issued by the American Institute
of Certified Public Accountants because Planning must be done for the work to be correct and to enable
the auditor to exercise reasonable professional care The concept of audit planning according to to have
been defined as those requirements that the auditor must take into account to carry out the audit so that
the objectives of this process are adequately achieved Planning the audit process is a set of standards
and considerations that the auditor must follow to plan the audit process, implement it efficiently and
effectively in a way that suits the environment of the client company, and express his technical and neutral
opinion in the audit process (Detzen, et al., 2024). The importance of planning in the audit process lies in
the reliance of many different parties on the reports issued by the auditors in making their decisions and
the auditor provides various services to many categories such as facility management, owners, government
agencies, investors, and others (Ibid.). The internal control system refers to a set of procedures that help
ensure that the company’s internal work is monitored and organized consistently and effectively The inter-
nal control system is evaluated by several factors, and these include matters such as the quality of its work
and the extent of its reliability, Among these procedures, an auditor who understands the structure of the
control system can Internal control can decide which aspects of the system should be relied upon during
the audit, and this can help the auditor avoid relying on aspects of the control system that may not be
reliable or accurate (Ferreira, 2018).
There are several definitions of the internal control system, and they differ depending on the entity
that developed it International Standard No. (315) defines it as the process used by persons responsible
for managing individuals to provide reasonable assurance about reliability, and effectiveness, and it has
been defined by the American Institute of Certified Public Accountants as the organizational policies and
procedures used within the organization to protect its assets and ensure the accuracy and validity of finan-
cial and accounting information These policies and procedures help improve the organization’s profitability
and compliance with management policies (Harasheh & Provasi 2023). International Auditing Standard
No. (500) states that evidentiary evidence is the data and information that the auditor obtains, such as
examination, inventory, reports, inquiries, and estimates, to reach conclusions on which he bases his pro-
fessional judgment to determine whether the financial statements under audit give a true and fair picture
(IFAS, 2022).
The documentation process, as stated in the International Auditing Standard (230), is the process of
creating documents (working papers) that document the audit process in terms of procedures, evidence,
and results, whether in the form of stored such as information, films, electronic media, or any other form
in which it is kept it the auditor must document any significant evidence and evidence that supports his
opinion (Kayikci & Khoshgoftaar,2024).
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Tariq et al. (2024). argues that electronic auditing of Jordanian commercial banks is of high im-
portance, and identifying electronic audit samples is considered one of the most important procedures,
and then documenting the electronic audit procedures. The next stage, planning the audit process, fol-
lowed by the adequacy of audit evidence, and finally examining and evaluating the internal control system
that determines the capabilities of the banks. A plentiful and electronic auditing application that works to
save time and effort and integrate the stages of the auditing process. On the other hand, (Al-Zoubi & Al-
Qadi 2016) believe that there is an impact on the electronic auditing system in reducing the burden of the
complexity of the electronic environment of the accounting information system on the auditor about the
increasing trust factor and dealing with a multiple generation of the electronic accounting information sys-
tem, and in Follow up on errors and sort them directly.
1.3 Quality of financial reports
The International Accounting Standards Board defined it as the qualitative characteristics of account-
ing information that include suitability and reliability, which includes the sub-characteristics of verifiability,
neutrality, and faithful representation (IASB, 2020). Warnlund & Klein (2020) argued that the quality of
financial reports is important because it provides qualitative information that can help in making decisions
and Useful qualitative characteristics, such as clarity, accuracy, and timeliness, can make the information
more useful in decision-making.
Yusran (2023) argue that the concern for quality in financial reporting comes from the importance of
the services provided by financial reporting, and the agreement of all parties and stakeholders about in-
ternal and external business organizations this requires an organized administrative effort, allocating re-
sources, providing capabilities, and making a great effort to achieve the set goals and continuity of work
while ensuring quality. argues (Bananuka & Nkundabanyanga,2023) that there is a relationship between
the effectiveness of audit committees between the internal control system and the quality of financial
reports in Jordanian commercial banks, which aims to increase investors’ reassurance about the com-
pany’s financial stability and integrity. (Onuorah & Friday 2016) believe that the quality of financial reports
is important in banks because of their quality of financial information, which increases investment oppor-
tunities. Accordingly, the main goal of financial reports is to provide appropriate information to decision-
makers, and the quality of financial reports is affected by all factors that affect electronic audit procedures,
and auxiliary controls are added to them through corporate governance.
1.4 Corporate governance
The Organization for Economic Co-operation and Development (OECD) defined governance as the rules
and procedures by which an organization is managed and monitored this includes a company’s governance
structure, which defines the rules for how rights and responsibilities are distributed among the organiza-
tion’s various employees, such as the board of directors, board members, shareholders, and others (OECD,
2017). The International Federation of Accountants defined corporate governance as a set of relationships,
responsibilities, and powers that the Board of Directors must work on, the goal of which is to keep work on
the right track and in the right direction, to achieve the main goals of the organization, and that resources,
equipment, and property are properly managed (IFAC, 2019).
The importance of commitment to corporate governance lies in the appropriateness of the workflow
of work procedures and following the organizational structure of the institution, and this reinforces the
principle of separation of duties, which in turn leads to activating the role of effective control that contrib-
utes to achieving the organization’s goals (Blevins et al., 2022). Applying governance in commercial banks
achieves a variety of goals, the most important of which are increased financing opportunities and low
investment costs, stabilizing financial markets, and reducing corruption, based on this, the commitment
of commercial banks to follow governance standards helps encourage the companies that Borrow from to
follow these rules, the most important of which are disclosure, transparency, and good management (Ko-
math et al., 2023). Governance in commercial banks is of a special and different nature due to the differ-
ence in the basic activity in this sector from other sectors, as there are elements that are not present in
other sectors, such as capital consisting of a small percentage of private funds and a high percentage of
deposits that are required to be available when the depositors need it, and the banks’ assets are made up
232
of loans of different duration, including long-term and medium-term (Aslam et al., 2024). the application
of governance rules leads to higher operational efficiency and increased profits, and thus the value of the
bank increases in the financial markets and increases, Trust leads to attracting investors and increasing
deposits, which makes the bank a strong investment value (Athar et al., 2023).
2. METHODOLOGY
This study was applied in Jordanian commercial banks and addressed the importance of applying
electronic audit procedures in its dimensions, which are (planning the audit process, examining and eval-
uating the internal control system for electronic operation, evidentiary evidence in terms of adequacy and
timing of obtaining it, documenting electronic audit procedures, identifying electronic audit samples) On
the quality of financial reports in Jordanian commercial banks in light of corporate governance. This was a
major source of information for research on the impact of electronic auditing procedures on the quality of
financial reports in Jordanian banks. Respondents' preferences were matched to data using traditional
paper surveys and an online Google survey. Bank employees helped distribute and temporarily store. The
appropriate sample size was determined to accurately represent the opinions of respondents. The ques-
tionnaire consisted of three sections: the introductory message, demographic questions, and measure-
ment of the independent and dependent variables. On a five-point Likert scale, the following answers were
given for each variable: strongly agree (5 points), agree (4 points), neutral (3 points), disagree (2 points),
and strongly disagree (1 point). Demographic analysis of the data the questionnaire presents the distribu-
tion of participants by gender, age, occupation, and educational level, among others.
The organization then conducts a statistical study of the research topics. By examining the range of
factors, we comprehensively assessed the potential for further study. The reliability of the measures se-
lected from the literature was then demonstrated using a reliability coefficient index and a series of ques-
tions to assess the quality of financial reporting. the primary objective of our study was to determine the
impact of the electronic audit with the five selected dimensions on the quality of financial reports in light
of corporate governance, we first studied the correlation between electronic auditing and the quality of
reports and then analyzed the internal structure of the five selected measures of the independent variables
and corporate governance. Based on the literature analysis, the following operational definition explains
the relationship between electronic auditing and financial reporting quality in Jordanian commercial banks.
This section explores the research hypotheses and provides a conceptual framework. A descriptive re-
search design was used to summarize the data and describe the characteristics of the variables. The
strength of the studied association between variables was evaluated using a correlation model. Secondary
sources such as books, annual bank reports, magazines, periodicals, references, and the Internet were
used to collect the necessary data.
The study served as a vital source of information to determine the impact of electronic auditing proce-
dures on the quality of financial reports in Jordanian commercial banks. Surveys from Jordanian commer-
cial banks were distributed and collected in 2022. There are thirteen types of commercial banks in Jordan,
and 143 responses were accepted for data analysis from Jordanian commercial banks belonging to differ-
ent regions. An appropriate sample size was chosen to represent the views of the participants to build a
quantitative and qualitative research strategy. The developed questionnaire consists of three parts: the
first is an introductory letter describing the objectives of the study. In the cover letter, it was emphasized
that their comments would be treated with caution. The second part included questions related to demo-
graphic data. All data that evaluated the research using the independent and dependent variables are
included in the last part. On a five-point scale, strongly agree = 5, agree = 4, neutral = 3, disagree = 2,
strongly disagree = 1 were assigned to the variables. A questionnaire was prepared for commercial banks
in Arabic and English and was distributed personally and through Gmail accounts.
All data were analyzed using SPSS. There were two components to examining the data: a) examining
demographic data and b) analyzing the data for each research issue and evaluating the study hypothesis.
Due to the ease of understanding by interviewees, a five-point Likert scale has historically been used by
the majority of studies. In the pilot project, the study sample was then asked to provide their impressions
and opinions about the impact of electronic auditing on the quality of financial reports in Jordanian com-
mercial banks in light of corporate governance .The validity and reliability of the questionnaire, a key
233
research instrument, are crucial for determining the dependability of the research results and conclusions.
Thus, it also determines the precision and consistency of the variables' measurements and their selection.
Although validity and reliability are closely connected, they represent distinct characteristics of a measuring
instrument. In general, a measuring device may be accurate without being valid, but it is also likely to be
accurate if it is precise. Nevertheless, dependability alone is insufficient to guarantee legitimacy. Even
though attest is trustworthy, it may not correctly represent the intended behavior or quality. Thus, the con-
tent validity of a measuring instrument is a validity study that exposes how well each item in the measuring
instrument performs its intended function.
A targeted study of the literature, definitions, and ideas was utilized to guarantee the content validity
of the questionnaire to increase the quality of the expressions in the measuring instrument and further the
research objectives. This section will discuss the reliability and validity of this study. When measuring
scales are used in research, the measurement scale’s dependability must be established [29]. The word
“reliability” refers to the capability of the measuring scale to represent the measured construct consist-
ently. Therefore, a reliable scale should produce consistent results throughout time and geography. A cer-
tain level of dependability is necessary for a trustworthy measuring scale. Data analysis uses a measuring
scale that is both reliable and accurate. Methods for measuring the dependability of a scale include the
test-retest, different forms, and internal consistency techniques. Numerous research strategies have also
been used to establish dependability based on internal consistency. Cronbach’s Alpha Coefficient is em-
ployed in this study since it is the most popular and extensively used approach for measuring internal
consistency. Cronbach’s alpha assumes values ranging between zero and one (0–1). Higher values sug-
gest more scale dependability and vice versa. Generally, Cronbach’s alpha values should be at least 0.70
to ensure dependability. However, even though a value of 0.70 or higher is often desirable, a value of 0.60
will suffice for work utilizing freshly established measures, such as those used in the present research. As
demonstrated in Table 1, all alpha values were more than 0.70, indicating the dependability of artificial
intelligence applications and service quality.
Table 1. Tests for internal consistency - stability of the study instrument
Domain
Sub variable
Number of
paragraphs
Cronbach
Alpha
Electronic Audit
Procedures
Planning for the audit process
5
0.775
Examination and evaluation of the internal
control system on electronic operation
5
0.823
Evidence in terms of adequacy, timeliness, and
access
5
0.770
Documentation of electronic audit procedures
5
0.707
electronic audit samplesIdentification of
5
0.747
Electronic Audit Procedures
25
0.837
Quality of financial reporting
8
0.746
Corporate governance
8
0.829
All paragraphs
41
0.915
Source: own
The various elements studied and their dimensions are characterized by stability, as the second layer
study was conducted on the same eye and under the same conditions, where the reader’s alpha values
are considered effective when (Alpha ≥ 0.70), and the Cronbach alpha value of the independent variable
items (electronic audit procedures) reached (74.6%). the presence of financial reports (74.6%), corporate
governance (82.9.2%), and all tools (91.5%).
3. RESULT AND DISCUSSION
The categories of years of experience were determined based on consultation with the Personnel De-
partment, and we note that the members of the study sample have high experience in the banking field,
as the percentage of those whose experience ranges from (10 to less than 15 years) was (34.33%), and
234
the percentage was (32.84). %) His experience constitutes (15 years or more), and the percentage of ex-
perience of the limited study sample from (5 to less than 10 years) was about (23.13%), and the lowest
category was the first category (less than 5 years), where their percentage reached (9.7%) This indicates
the interest of banks in human resources, especially those with high experience because they have ob-
tained many courses over the years of their service and thus have high efficiency and effectiveness in
dealing with banking operations. Those holding a bachelor’s degree represent (55.22%) of the sample,
and they work well in the auditing and accounting departments. The percentage of the first higher diploma
degree is (6.72%) and the doctorate is (8.96%), while the lowest percentage remains (5.97%). This indi-
cates that there are no people who are particularly familiar with the study more than the job title “internal
accountant” with a percentage of (45.52%) of the sample members. In the second place, those working in
the position of “accountant” remained with a percentage of (35.07%), and a percentage of workers with
the job title “president” remained. The department finished the job. “Member of the heads of the audit
committees” (9.70%). It is noted that there are senior positions within the study analysis staff, as approxi-
mately (13) department heads can answer the questionnaire questions, which increased the stability of
the answers of the analytical study and “Member of the Audit Committee” (9.70). %) The certificates con-
tain the results of a professional statistical analysis stating that there is a large number of specific individ-
uals who were tested to state that they do not have professional certificates, and this increases a negative
point in the preferred local performance and for the parties concerned with it. Their number was also higher
(58.21%) than the members of the study. The actual number that does not have any accredited certificate,
is certainly equivalent to the fact that there are (23.13%) of the members have mastered the doctoral
certificate (CIA), a certificate whose importance is undoubted. She holds the best professional certificates
in the field of internal auditing and was able to achieve an outstanding percentage in the CMA certificate.
(11.19%), and the percentage of those holding the JCPA (5.22%), the least and most important of which is
the CPA certificate. The percentage of those who mastered this control reached (2.24%). The importance
of members obtaining scientific certificates in the creativity of the study is due to the new technical level,
which has a very significant impact on the main specialization and the extent of its ability to achieve it.
Scientific specialization. View the results now. The largest group of study members (57.46%) whose main
scientific specialization is “accounting.” It was learned that (4.48%) of the members were allocated to the
“Economics” major. The lowest specialty among members was “management” (2.99%).
Table 2. Normal distribution test results
Domain
Z value
Significance
level
Distribution
result
Electronic Audit Procedures
0.680
0.745
Normal
Quality of financial reporting
1.159
0.136
Normal
Corporate governance
1.512
0.061
Normal
All paragraphs
0.792
0.558
Normal
Source: own
Table 2 describes the data for the study variables achieving a normal distribution, and this confirms
that the level of significance of the (Z) value for the variables was greater than (5%), meaning that they are
not statistically significant. The statistical significance of the “electronic audit procedures” variable
reached (74.5%), and the “quality of financial reports” variable. (13.6%), for the “corporate governance”
variable (6.1%), and all items of the tool (55.8%), that is, it is not statistically significant, that is, according
to the statistical criterion for judging the result, the data meets the condition of a normal distribution. The
second condition is that the axes of the independent variable are free of linear interference, meaning that
the independent variables must be independent among themselves because the presence of linear inter-
ference between the axes inflates the value of the interpretation factor (R2) and makes it express an unreal
value. To ensure the fulfillment of this condition, a test used in many studies, which is the Multicollinearity
test, which is based on calculating the variance inflation factor (VIF) and calculating the tolerable variance
(Tolerance), the decision rule, meaning that the independent variables are considered free of linear inter-
actions if the value of (VIF) The test value is greater than 10 and the Tolerance value is greater than 5%.
235
Table 3. Testing that the independent variables are free of linear interactions
Variable
(VIF
(
(Tolerance)
Planning for the audit process
1.578
0.634
Examination and evaluation of the internal control system
on electronic operation
2.847
0.351
Evidence in terms of adequacy, timeliness, and access
1.869
0.535
Documentation of electronic audit procedures
2.027
0.493
electronic audit samplesIdentification of
1.867
0.536
Source: own
Table 3 clarifies the variations of the study I decided to verify that there are no linear interactions, and
this confirms that the value of (VIF) for the variables is less than (10), as later the variation of the “Internal
System Inspection Examiner on the Electronic Operating System” had values of (2.847), in addition to that
the values of (Tolerance) It was greater than (5%), which means it is statistically significant to judge the
result that we got rid of collinearity.
Table 4. Multiple regression analysis to track electronic audit procedures and their dimensions on the quality
of financial reports
Variable
Regres-
sion co-
efficient
Value
(v)
Signifi-
cance
level
Correla-
tion coef-
ficient
Adjusted
coeffi-
cient of
determi-
nation
Value (P)
Signifi-
cance
level
Planning for the audit
process
0.059
0.843
0.401
0.774
0.583
38.149
0.000
Examination and evaluation
of the internal control
system on electronic
operation
0.286
3.025
0.003
Evidence in terms of
adequacy, timeliness, and
access
0.257
3.350
0.001
Documentation of
electronic, audit procedures
0.187
2.346
0.021
Identification of electronic
audit samples
0.177
2.319
0.022
Source: own
Table 4 indicates that there are statistically significant indicators between the electronic audit proce-
dures (independent variable) with its five dimensions combined on the quality of financial reports (depend-
ent variable) in Jordanian banks, certainly as indicated by the (F) test (38.149), which is significant at the
significance level (0.05). There is also a comprehensive correlation (0.727) between electronic auditing
and the presence of financial statement data, and this confirms the importance of electronic auditing pro-
cedures in the presence of a financial survey. In addition, agreement on an interpretation of the complete
model (58.3%) indicates that the electronic auditing procedures in all their aspects together can explain
the changes that have been developed in the quality of financial reports (58.3%), and it means that the
quality of financial reports is based on the truthfulness of their content. The reason behind this is the
reliability of its data, and this is supported by the existence of electronic auditing procedures, and it details
the contents of the model regarding the variations. Independently, the major experiments affected the
quality of financial reports. The focus was “verifying the internal disclosure system on electronic operation,”
where the percentage of the problem was (28.6%), then the focus was “evidence in terms of accuracy and
differences in diagnosis” (25.7%), then the axis of “Documenting electronic audit procedures” (18.7%),
and finally came the axis of “Determining the impact of electronic isolation” (17.7%). However, the precise
236
results of the axis of “Planning the electronic audit process” (5.9%), and this is between... The importance
of electronic auditing procedures in Jordanian banks is due to their strong and influential impact on devel-
oping the quality of financial performance.
To accept or reject the five sub-hypotheses that branched off from the main hypothesis, we relied on
the results of the previous multiple regression analysis, through the statistical significance of the (t) values,
and the decision rule is to accept the alternative hypothesis if the (t) value is statistically significant at the
level (α≤0.05) as follows: The first sub-hypothesis: "There is no impact of audit planning on the quality of
financial reporting in Jordanian commercial banks". The results of the regression analysis show that there
is no statistically significant effect of planning the electronic audit process on the quality of financial reports
in Jordanian commercial banks, confirming the significance of the value of (T) for the axis of planning the
audit process, which was not statistically significant at the level of (α≤0.05), and from the above we con-
clude the acceptance of the hypothesis of the study "There is no statistically significant effect at the level
of significance (α≤0.05) for planning the audit process on the quality of financial reports in commercial
banks. Jordanian".
Second sub-hypothesis: "There is no effect of examining and evaluating the internal control system on
the quality of financial reporting in Jordanian commercial banks". The results of the regression analysis
show that there is an impact of examining and evaluating the internal control system on the quality of
financial reports in Jordanian commercial banks, confirming this in terms of the value of (T) for the axis of
examining and evaluating the internal control system, which was statistically significant at the level of
(α≤0.05), with a positive impact of (0.286), and this means that the increased interest of banks in exam-
ining and evaluating the internal control system by one degree reflects positively on the quality of financial
reports by (28.6%).
Third sub-hypothesis: "There is no effect of evidence in terms of adequacy, timeliness, and access to
it on the quality of financial reports in Jordanian commercial banks". The results of the regression analysis
show that there is an impact of evidence in terms of adequacy, timing, and obtaining it on the quality of
financial reports in Jordanian commercial banks, confirming this in terms of the value of (T) for the axis of
evidence in terms of adequacy, timing and obtainment, which was statistically significant at the level of
(α≤0.05) and a positive impact of (0.257) and means that increasing interest in evidence in terms of timing
and obtaining it to one degree reflects positively on the quality of financial reports by (25.7%).
Fourth sub-hypothesis: "There is no impact of documenting electronic audit procedures on the quality
of financial reports in Jordanian commercial banks". It is clear from the results of the regression analysis
that there is an impact of documenting electronic audit procedures on the quality of financial reports in
Jordanian commercial banks, confirming this in terms of the value of (T) for the axis of documenting elec-
tronic audit procedures, which was statistically significant at the level of (α≤0.05) and a positive impact
of (0.187), and this means that the increased interest in documenting electronic audit procedures by one
degree reflects positively on the quality of financial reports by (18.7%).
Fifth sub-hypothesis: "There is no effect of determining electronic audit samples on the quality of fi-
nancial reports in Jordanian commercial banks". It is clear from the results of the regression analysis that
there is an effect of determining electronic audit samples on the quality of financial reports in Jordanian
commercial banks, confirming this in terms of the value of (T) for the axis of determining electronic audit
samples, which was statistically significant at the level of (α≤0.05) and with a positive impact of (0.177),
and this means that the increased interest in determining electronic audit samples by one degree reflects
positively on the quality of financial reports by (17.7%). The second key hypothesis: "There is no impact of
corporate governance on the quality of financial reporting in Jordanian commercial banks". To reach results
from which we can judge the validity of the hypothesis, the data were subjected to a simple regression
analysis to know the impact of "corporate governance on the quality of financial reporting in Jordanian
commercial banks", the following table summarizes the results.
Table 5 discusses the existence of an impact of corporate governance on the quality of financial re-
ports in Jordanian commercial banks, with the stability of other factors, confirming this in terms of the
value of (T) for corporate governance, which was statistically significant at the level of (α≤0.05) and a
positive impact of (0.749) and means that the increased interest in corporate governance to a degree
reflects positively on the quality of financial reports by (74.9%)
237
Table 5. Simple regression analysis of the impact of corporate governance on the quality of financial reporting
Independent
variable
Correla-
tion co-
efficient
Coeffi-
cient of
determi-
nation
Value (P)
Signifi-
cance
level
Regres-
sion coef-
ficient
Value (v)
Signifi-
cance
level
Corporate
governance
0.749
0.558
168.96
0.000
0.749
12.999
0.000
Source: own
This result shows the importance of corporate governance. It was also found through the result of the
coefficient of determination that corporate governance can clarify changes in the quality of financial re-
ports by (55.8%) and this is an indicator that improving the quality and reliability of financial reports is
supported by corporate governance.
CONCLUSION
Commercial banks are interested in electronic audit procedures, by paying attention to all dimensions
of electronic auditing, (planning the audit process, examining and evaluating the internal control system
on electronic operation, evidence in terms of adequacy, timing and obtaining, documenting electronic audit
procedures, identifying electronic audit samples Financial reports in commercial banks are characterized
by high quality in terms of adherence to generally accepted accounting principles, which gives the financial
statements accuracy, clarity, transparency, credibility and error-free as well as commitment Commercial
banks in corporate governance emanating from the laws, regulations and instructions issued by the Board
of Directors and contained in the internal control systems that have a high ability to interpret the changes
that occur in the quality of financial reports, which contribute as a positive intermediary factor to improve
the impact of electronic audit procedures on the quality of financial reports, and to increase the strength
of impact, and improve the amount of electronic audit procedures on interpreting changes in the quality of
financial reports. This study recommends Increasing the interest of Jordanian commercial banks in elec-
tronic audit procedures, to increase the quality of their financial reports and the need to use modern means
and methods of technology and electronic audit techniques in the audit process, which is reflected in in-
creasing the quality of audit procedures, the effectiveness of work and the speed of delivery, and encour-
aging employees in Jordanian commercial banks to obtain professional certificates such as the Certified
Internal Auditor (CIA) and the Certified Management Accountant (CMA). And conducting future studies on
this subject and linking it to other fields and different variables, helps to fill the gap in the accounting
literature on this subject.
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