The Impact of Information Technology on External Audit Fees - A Field Study in the Hashemite Kingdom of Jordan

Abstract

This paper aims to study and analyze the information as a factor that affect audit fee, and the measurement and analysis of these factors based on the viewpoints of auditors in order to identify their importance in determining the level of fees in the IT environment.

To achieve the objectives of the study, the researcher uses the descriptive analytical approach with review of the relevant studies and literature on determination of audit fees and the preparation of questionnaires that distributed to auditors.

The study has found that IT level in the customer’s facility subject of audit highly affects on determining the fees of the audit process in the Hashemite Kingdom of Jordan concerning the level of use and application of information technology in the facility, the risks of information technology, operating systems, the nature and extent of internal controls and the use of the business electronic commerce transactions, in addition to the use of websites to exchange operations and to disclose the data. The audit committee also plays a significant role in support of the external audit to determine audit fees. There are factors associated with the auditor and audit office that affect in determining the fees of the external audit in IT environment in the Kingdom of Jordan. While the factors that are related to organizational requirements of audit process affects in determining the fees of the external audit in IT environment. The research shows that lack of legislation governing online financial transactions and the lack of identification of the responsibilities and duties of the auditor in the IT environment in professional legislations are key factors in determining audit fees in the IT environment.

Key words: audit fees, information technology, audit