Auditing for the Future

British Journal of Economics, Finance and Management Sciences November 2012, Vol. 6 (2)

108

The Impact of Global Financial Crisis on Auditing Practices in the Commercial Banks of Jordanian Dr. Hassan Jamil al-Saffar Introduction: Historically, the Jordanian Commercial Banks is one of the strongest economic sectors in the country, although the region suffering from the effects of political and economical instability at the regional and international levels, but the Jordanian Commercial Banks was able to maintain the strength and stability. One of reasons for this growth and strength, is the role played by the Central Bank of Jordan in administrative and supervisory and control practices over banks. The history of banks in Jordan dates back to the early twentieth century when the Ottoman Bank was founded in 1925 (Yaghmour et al. 2009, P. 3) , followed after the Arab-Israeli war 1948, moving the Arab Bank to the city of Amman. Then the Jordanian Commercial Banks has seen entry of a number of local and foreign banks to provide banking services in the Jordanian market. The Commercial Banks in Jordan consists from (13) commercial bank, and three Islamic Banks, and nine branches of foreign banks all subject to the instructions and the supervision of the central bank of Jordan. The Central Bank of Jordan is a public corporation owned by the government because of its significant role in issuing money and implementation of the monetary policy of the state (Hanoon, 2005, p. 29). Since the banks are the most sensitive to the impact of financial crisis from other organizations, this paper will look at the methods of audit and control imposed by the global financial crisis and the auditors and the business of banks in Jordan, both the Central Bank and Department of Internal Auditing in the bank. Problem Statement and Questions: This study determined the problem as follows: “The causes and repercussion of the global financial crisis affected the strategies of control...