The Impact of Continuous Auditing on Financial Fraud: A Qualitative Study of Jordanian Industrial Enterprises

Abstract

The technological revolution has shifted the auditing process from manual auditing to electronic auditing. The major objective of this study is to determine the effects of continuous auditing with its combined dimensions (continuous auditing quality, continuous auditing efficiency, and information technology) to lessen financial system fraud in Jordan's public shareholding industrial enterprises. The sample of our study is comprised of 53 industrial enterprises registered with the Amman Stock Exchange. To extract the analysis's findings, a statistical analysis was performed on (220) surveys using SPSS software. We found that constant auditing significantly reduced the financial fraud in Jordanian industrial enterprises. Additionally, the continuous auditing has a statistically significant influence on minimizing financial fraud in Jordanian industrial enterprises. The study recommends that Jordanian industrial companies should pay the close attention to the process of developing internal auditors in the areas of accounting information and auditing quality & efficiency.

Contribution/Originality: The study contributes to improving the necessary procedures for the integration of the relationship between continuous and internal audit. The findings would help the practitioners in making the knowledgeable selections about era adoption, training, and danger control practices to successfully combat the financial frauds.