Abstract

This study aimed to identify the extent of the audit committees’ contribution in the reduction of the liquidity risk levels in the Jordanian commercial banks. The current study also aimed to identify whether there are any statistically significant differences between the extent of the audit committees’ contribution in the reduction of the liquidity risk levels in the Jordanian commercial banks that can be attributed to the auditor’s years of experience and academic qualification. As for the population of the current study, it consisted of all the internal auditors working in the Jordanian commercial banks. As for the sample, it consisted of forty (40) internal auditors working in Jordanian commercial banks.

The Researcher has concluded the following results:

1.  Audit committees participate in reducing the liquidity risk levels in the Jordanian commercial banks.
2. There are statistically significant differences between the extent of the audit committees’ contribution in the reducing the liquidity risk levels in the Jordanian commercial banks which can be attributed to the auditor’s experience.
3. There are no statistically significant differences between the extent of the audit committees’ contribution in the reduction of the liquidity risk levels in the Jordanian commercial banks which can be attributed to the auditor’s academic qualification.

The researcher has suggested the following recommendations:

1. The researcher of the current study recommended providing more attention to developing the work performance of internal auditors in the Jordanian commercial banks. That shall be done in the aim of raising the accuracy and reliability of the financial statements they make.
2. The researcher of the current study recommended encouraging internal auditors to comply with the principles of accuracy and reliability in their financial statements in Jordanian commercial banks. The researcher also recommended promoting this to be their dominant way of thinking
3. The researcher of the current study recommended developing the internal auditors’ performance in using the advanced information systems. That shall be done in the aim of raising the accuracy and reliability of their financial statements to reduce the liquidity risk levels.

The researcher of the current study recommended conducting more studies about the same matter with applying them on other sectors.

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