vol 17 no 2,2017

Measuring the Application of COSO Aramework for Internal Control from the Point of View of the External Auditors in the Public SHareholding Companies listed on the Amman Stock Exchange


This study aims at measuring the extent of the application of (COSO)framework for Internal Control from the viewpoint of the external auditors of companies listed in Amman Stock Market (ASM).The sample of the study consists of (189)external auditors monitoring (189) public companies that are listed in ASM. A questionnaire has been designed to measure the variables of the study, and then the questionnaire has been distributed on the population of this study. One main hypothesis and five secondary hypotheses were designed to include all internal control components (control environment, risk assessment, control activities, Information and Communication, as well as monitoring).The data was statistically analyzed by measuring the frequency of the application or non-application of the internal control components by each company.Then, the hypotheses were tested using (Z-test for Proportion).

The analysis revealed that public companies generally apply three componentsof (COSO) for internal control namely, control environment, risk assessment, and control activities, but there was no application for the other components"information &Communication" and "monitoring".On the other hand, the financial sector is characterized with a higher level of application, while the industrial sector showed a low level of application especially with reference to the component ofcontrol environment which revealed a low level of application for the human resources policies, procedures, and accountability. The researcher recommended that companies should regularly assess their internal control systems and should pay more attention to thevariants of control and information &Communication, monitoring, especially in the industrial sector and the service sector.

Keywords: COSO, control environment, risk assessment, control activities, Information and Communication, Monitoring.


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