Alternative Internal Audit Structures and Perceived Effectiveness of Internal Audit in Fraud Prevention: Evidence from Jordanian Banking Industry
Bibliographic record
Abstract
The purpose of this study is to investigate the perceived effectiveness of internal audit units in fraud prevention in Jordanian banking industry. It examines the effect of internal audit souring arrangement on perceived effectiveness of fraud prevention from senior managers’ point of view. A survey of forty five executives is selected to gather information’s to test the study hypotheses. The main findings indicate that internal audit units are perceived effective in fraud prevention. Furthermore, in-house internal audit units are perceived more effective than outsourced internal audit functions in fraud prevention. The study surprising result is that internal audit units may fear from retaliation when reporting fraud related top management, however, this may result in weak independence and objectivity of internal auditors. One of the crucial reasons for these results is that in-house internal audit units have more in depth- knowledge about banks culture, polices and procedures than outsourced auditors . Moreover, senior managers consider that internal audit units have more experience than outsourced auditors in fraud prevention and detection. The study recommends that internal auditors should have comprehensive training programmes to get the sufficient knowledge in fraud prevention and detection in banking industry. Key words: Accounting; Audit; Structure; Fraud; Banking; Jordan Resume: Le but de cette etude est d'examiner l'efficacite percue des unites d'audit interne dans la prevention contre la fraude dans l'industrie bancaire jordanienne. Il examine l'effet de l'audit interne sur l'efficacite percue de la prevention contre la fraude du point de vue des cardres superieurs. Une enquete aupres de 45 cadres est selectionnee pour rassembler des informations afin de tester les hypotheses de l'etude. Les resultats principaux indiquent que les unites d'audit interne sont percues efficaces dans la prevention contre la fraude. Par ailleurs, les unites d'audit interne a l'interieur de l'organisation sont percues plus efficaces que des fonctions d'audit interne externalisees dans la prevention contre la fraude. Un resultat surprenant de l'etude est que des unites d'audit interne auraient peur des represailles lors que la fraude est liee a la haute gestion, cependant, cela peut conduire a l'independance et l'objectivite faibles des auditeurs internes. L'une des raisons essentielles de ces resultats est que les unites d'audit interne a l'interieur de l'organisation ont plus de connaissances en profondeur sur la culture, les politiques et les procedures de l'industrie bancaire que les auditeurs externalises. Par ailleurs, les cadres superieurs considerent que les unites d'audit interne ont plus d'experiences que les auditeurs externalises dans la detection et la prevention contre la fraude. L'etude recommande que les auditeurs internes doivent avoir des programmes de formation complets pour obtenir des connaissances suffisantes dans la detection et la prevention contre la fraude dans le secteur bancaire. Mots-cles: Comptabilite; Audit; Structure; Fraude; Operations bancaires; Jordanie
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.001 |
| Science and technology studies | 0.000 | 0.001 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.001 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".