The Role of External Audit in View of Sudden Financial Collapses on the Jordanian Commercial Banks Sector

The study aims to determine the role of external audit in view of sudden financial collapse son Jordanian commercial banks. To achieve this, the researcher designed a questionnaire consists of (40) paragraphs. The study results show that there is a statistically significant impact (the first hypothesis) of external audit on sudden financial collapses on Jordanian commercial banks. The value of the relationship between the two variables is 0.638 which is statistically significant, because calculated f value is equal to (75.31) which is statistically significant as (0.000) value, which is less than (5%). The study also indicates that there is a statistically significant effect (the second hypothesis) of external audit on the compliance of the audit profession rules on Jordanian commercial banks. The value of the relationship between the two variables is 0.615 which is statistically significant, because calculated f value is equal to (60.09) which is statistically significant as (0.000) value, which is less than (5%). The findings suggest that there is a statistically significant effect (the third hypothesis) of external audit on the detection of deception and fraud on Jordanian commercial banks. Where the value of the relationship between the two variables is (0.673) which is statistically significant, because calculated f value is equal to 91.07 which is statistically significant as (0.000) value, which is less than (5%).

Determining the impact of external audit on the detection of deception and fraud on Jordanian commercial banks.

Study Hypotheses
H1: There is no statistically significant impact of external audit on sudden financial collapses on Jordanian commercial banks.
H2: There is no statistically significant impact of external audit on compliance with auditing rules on Jordanian commercial banks.
H3: There is no statistically significant impact of external audit on the detection of deception and fraud on Jordanian commercial banks.

Variables
This study used four variables. External audit as independent variable, and three dependent variables are represented in: (a) sudden financial collapses, (b) compliance with auditing rules, and (c) detection of deception and fraud.

Research Design
The following research design model describes the relationships among independent variable and dependent variables.

Literature Review
The study of Ja'ara (2012), focused on the discovery of the most important methods and procedures used to identify deception and fraud in the financial statements of a group of public shareholding companies in Jordan. The main findings of this study are that the external auditors have the ability to detect techniques and methods of deception and fraud which are used in preparing financial reports. The main recommendations in this study are that the external auditor has to comply with international standards in the audit process and use of professional doubt in the risk of financial misrepresentation of the financial statements resulting from the illegal closure.
As reported by Egbunike, Amaechi Chinedu Egbunike, Francis Okafor, Gloria (2017), the company's management must work to control the internal control system and concealing any practices of deception and fraud by accounting department. The study identified the adequacy of the company's financial position and financial crises forecasting by determining the revised operational cash audit instrument. The main findings of this study are that the revised operational cash audit can be an effective tool for external auditor to gain accounting scams and accounting fraud. Nawaish (2016), argued on the need for a set of controls, customs, ethical and professional principles to achieve confidence and credibility in the information contained in the financial statements, especially investors dealing in the stock market. The study concluded that there is a weakness in the performance of professional organizations in their role in monitoring the external auditor.
According to Kavrar, O Yılmaz, B (2017), there is an important relationship between the reliability of financial statements and their role in financial decision-making processes, and the identification of creative accounting methods used in data reliability. The study concluded that the discovery of errors and fraud is the responsibility of the auditor. Kavrar & Yılmaz (2017), there is strong relationship between corporate failures and auditors. Alaraji (2017). Conjugate the effect of corporate governance on the Expectation Gap between the external auditors and the users of the financial statements in the companies.

Expected Contribution of the Present Study
Most of the previous research has focused on the importance of external auditing in preventing deception and fraud in banks. The current study will be a new addition to the external audit on sudden financial collapses, linked to compliance with professional rules and deception and fraud detection.

Theoretical Framework
With the collapse of many banks and companies in the world, the interest in looking for a strong external audit system had been increased, which ensures the integrity of financial data from deception, fraud and perversion, to ensure the continuity of the bank. Many banks have undergone changes in the economy and its impact on profitability and continuity, because many of economic banks and auditing companies aim to achieve the financial goal away from the objectives of the profession.
According to Nicoletti (2016), the external audit is the collection and evaluation of evidences and proofs to determine their conformity with predetermined criteria, and the audit must be performed by a person of sufficient competence, experience and independence.
The researcher believes that the external audit is the examination and evaluation of data, financial and accounting statements to ensure that they are free from errors, negligence, deception or fraud, to access data, lists and financial statements of high reliability, can be relied on in the present and future.
Al-Dnibat (2012), defined compliance with the rules of the external audit profession as "the ethical basis upon which all companies and individuals are based".
The researcher believes that compliance with the rules of the audit profession is a set of ethical, religious, practical and scientific values in the performance of the audit profession.

Study Population and Sample
The study population consists of Jordanian commercial banks by the end of 2018 and confined to Amman city. The study population includes (8) Jordanian commercial banks in Amman city, working in the field of industry, hotel and audit, to give the study flexibility in sample selection (study sample).The study sample consists of individuals working in Jordanian commercial banks (115), (N = 115). The simple random sample of the study population includes (8) Jordanian commercial banks, limited to: The researcher used questionnaires as a research methodology. The participants of the study were employees working in Jordanian commercial banks, limited to managers and heads of commercial banks in Jordan, managers and heads of accounting departments, and internal audit departments. The reason for choosing those that the researcher believes that this category of employees is the subject of the study. Questionnaires are distributed to the following categories: The random sample was used to select the study sample. One hundred and fifteen questionnaires were distributed to the members of the sample. As for the study time period, it was at the end of (31/12/2018).

Type of Study
This study is analytical and field descriptive, because it tests, analyzes and describes the role of external audit in view of sudden financial collapses on Jordanian commercial banks.

Data Sources
Data were collected from primary, secondary sources and personal experience of the researcher in the field of commercial banks in Jordan as follows: A) Secondary sources: Of references, periodicals and previous studies, and annual reports issued by Jordanian commercial banks. B) Primary sources: A questionnaire distributed to employees working in Jordanian commercial banks. The questionnaire addressed all research objectives, which were designed in the light of secondary data. Therefore, 115 questionnaires were distributed to individuals working in Jordanian commercial banks.

Number of distributed questionnaires = 115
Number of returned questionnaires = 98 Number of questionnaires that did not returned = 17 The response rate is equal to (98 /115 = 85%)

Data Analysis
For statistical analysis, the researcher used as statistical procedures in this study: SPSS statistics software, Cronbach alpha, multiple linear regression analysis, Sample t-Test analysis.
A) Descriptive statistics include: 1. To demonstrate the importance of the questionnaires for the sample by using the mean. To show the extent of the agreement of sample members and to converge the responses by using the standard deviation.
2. Cronbach Alpha method for external consistency, and the percentage to indicate the degree of impact of these factors. B) Inductive statistics in (T-Test), and multiple regression analysis. C) SPSS statistics software. Table 3 presents the results of the stability of the field of impact of the external audit on the sudden financial collapses on Jordanian commercial banks in the manner of (Cronbach Alpha) for external consistency:   Table 3 shows that the value of Cronbach's alpha ranged from (0.774 to 0.884); this high value indicates a high consistency between the questions of the study, and indicates the high confidence of the study results. As for the value of Cronbach's alpha for combined questions, it was 0.946, which is a high value. Table 4 displays the means and standard deviations for the independent variable (external audit) fields and total mean calculated.  Table 4 shows that the highest mean score of 4.09 for " The external auditor is interested in purchasing invoices and selling assets " has the highest agreement degree, and the lowest mean was (3.71) for " Management provides the required financial and accounting data and information quickly " and " The management changes the external auditor during the financial years" with a high agreement degree.

Descriptive Statistics
The total mean score is (3.85) for overall External audit fields with a high agreement degree. Table 5 shows the calculated means and standard deviations of participants' responses for the first dependent variable "sudden financial collapses".  Table 5 shows that mean scores range from 3.57 to 4.18. The highest mean score was for "Taking lessons from sudden collapses of banks by bank's management" (4.18). Followed by "Management interests in following risks related to the Bank" (4.14), and the lowest mean was for "The Bank holds training courses for its employees" (3.57). These items were in the high agreement degree. The total mean for "Sudden financial collapses" reached (3.99), which indicates a high agreement degree. Table 6 shows the calculated means and standard deviations of participants' responses for the second dependent variable "compliance with the rules of the audit profession".  Table 6 shows that mean scores range from 3.76 to 3.95. The highest mean score was for " Not allowing for the management to influence the external auditor's work by reservation the bank's data and financial statements " (3.95), followed by "Commitment to audit profession's ethics" (3.89), and the lowest mean was for "Commitment to conservative accounting in profits' forecasting" (3.76).These items are in the high agreement degree. The total mean for" Commitment with auditing rules" reached (3.83),which indicates that the level of Commitment with auditing rules in various commercial banks in Jordan is high. Table 7 shows the calculated means and standard deviations of participants' responses for the third dependent variable "detection of deception and fraud".   Table 7 shows that mean scores range from 3.56 to 3.91. The highest mean score was for "Management's lack of interest in Bank's staff opinions" (3.91), followed by "The strength and weakness of the external auditor in detecting of deception and fraud" (3.85), and the lowest mean was for "External auditors are unable to obtain the required information due to pressure from the management" (3.56). These items are in the high agreement degree. The total means score for "detection of deception and fraud" reached (3.71) with the high agreement degree.

First Hypothesis
H 0 : There is no statistically significant impact of external audit on sudden financial collapses on Jordanian commercial banks.
H 1 : There is statistically significant impact of external audit on sudden financial collapses on Jordanian commercial banks.
To test this hypothesis, simple linear regression analysis was used (Table 8). The correlation coefficients (r) between the external audit and the detection of deception and fraud on Jordanian commercial banks was (0.673), R-Square value (0.453), F value (91.07) at significance (0.000). All these findings implied that there was a positive statistically significant relationship at a significant level (P≤0.05) between the external audit and the detection of deception and fraud on Jordanian commercial banks.