Research Article: 2021 Vol: 25 Issue: 1S
Ziad Odeh Al-Aamaedeh, Muata University
Atallah Ahmad Alhosban, Aqaba University of Technology
Coronavirus, Accounting Organizations, Management.
The study aimed to show the impact of Coronavirus (Covid -19) on external audit from the viewpoint of external auditors. The study relied on books and references to achieve the aims of the study. Among the most important results: that there are new tasks and jobs that appeared for auditors with the emergence of Corona delinquency, which is to ensure the reliability of computer networks and the need to devise tools to communicate with customers, and that cloud accounting is one of the important things that must be followed during the impact of Corona delinquency, given that it depends on following up the requirements of customers remotely Or conducting accounting and auditing operations from different places where clients are located, and this helps to find divergence. Among the most important recommendations: the need for clear standards to apply the principles and procedures of auditing in light of the Corona delinquency through accounting organizations and global and local auditing bodies.
The uncertainty arising in the current environment may increase the challenge in obtaining sufficient and appropriate audit evidence necessary to form an independent opinion about the reasonableness of management's estimates and judgments. It is important that preparers and auditors participate in impact assessment discussions early in the preparation timeframe and audit process, as there are likely to be issues not previously encountered that may now need to be considered. Both preparers and reviewers are likely to be affected by travel restrictions and stay-at-home requirements, presenting practical challenges for audit sharing. Firms may obtain the information in new or different ways and/or exercise controls over the production of financial information differently. Audit firms may also be pivotal to working remotely, using the various technology tools available.
The Study Problem
The consequences of the Covid-19 pandemic on financial statement reporting and auditing processes are complex and have created challenges for management, Those Charged with Governance (TCWG), and auditors. There is an unprecedented level of uncertainty about the economy, future earnings and many other inputs that are essential elements of financial reporting. There are likely to be multiple material reporting implications that need to be considered by the preparers of financial statements for reporting purposes in the potential short and medium term. Therefore, Corona delinquency has created some challenges that auditors may face to face, and these challenges are in assessing and evaluating the risks that auditors may face, and assessing the ability of auditors to adapt to responding to those risks, and audit evidence (ACCA, 2020).
Therefore, the problem of the study is to answer the following questions:
1. Do external auditors in Jordan take the risks facing auditing in light of the Coronavirus pandemic?
2. Do external auditors in Jordan implement external audit procedures to deal with Corona delinquency risks?
Hypothesis of Study
1. External auditors in Jordan take the risks facing auditing in light of the Coronavirus pandemic.
2. External auditors in Jordan implement external audit procedures to deal with Corona delinquency risks.
Objectives of the Study
This study attempts to achieve the following objectives
1. Identify the challenges facing external auditors in dealing with Corona delinquency by identifying and assessing risks and determining how to respond to the risks facing the external auditor in light of the Corona delinquency.
2. Knowing the role of the auditor in dealing with audit evidence in light of the Corona delinquency, by determining the effects of Corona delinquency in the form of a mechanism to collect audit evidence in light of Corona delinquency.
3. Identifying the obstacles that may face the external auditor in addressing issues that affect the external audit work environment in light of the Corona delinquency.
The Importance of Studying
The importance of the study comes from the following
1. As the world faces the COVID-19 pandemic together, take extensive action to find ways to operate at this difficult time. As the priority has always been, has always been, patient safety, and at this moment, we continue to work in an external audit environment within the relevant legal and regulatory frameworks to do everything possible to put the safety of patients and employees in the first place
2. External audit is a database for all groups in business organizations, which is related to any problems or obstacles that affect the conduct of the operational process in light of Corona delinquency.
3. Risks represent the most important obstacles facing auditors when practicing the audit process in light of delinquency, and this study came to clarify how to deal with these risks by external auditors and how to respond to them.
Study Methodology
The study relied on secondary sources to cover the theoretical framework of the subject of the study and the work of the proposed framework for scrutiny in light of Corona delinquency. While the practical side relied on designing a questionnaire containing the study variables and measuring the role of the external auditor in dealing with Corona delinquency. The questionnaire was distributed to external auditors in Jordan
Study Variables
Risks
These are the procedures that management takes to confirm the preparation of financial reports according to accounting principles and to identify the fundamental risks that are present in them, and after that it is based on determining the role of management in dealing with those risks, and the risks facing the preparation of financial statements are the process of knowing the risks related to achieving the objectives of the enterprise and analyzing them And identifying ways to adequately confront it (Badara, 2013).
External Audit
organizational processes aimed at achieving reasonable assurance of the fairness of the financial statements of the entities subject to the audit; Therefore, it serves many parties inside and outside the facility, and it also makes a report that represents an impartial technical opinion about the correctness and fairness of the financial statements, the financial statements according to the requirements of generally accepted accounting principles (Duwailah, 2021).
Audit Evidence
Matching tools between the financial statements presented to the auditor in the financial statements and statements and the level of his conviction that these statements are correct (Akbar, 2019).
Coronavirus pandemic: an infectious disease caused by the last discovered virus of the Coronavirus strain. There was no knowledge of the existence of this new virus and its disease before the outbreak began in the Chinese city of Wuhan in December 2019. Covid-19 has now turned into a pandemic affecting many countries of the world (Ahmed, 2019)
Previous Studies
Ahmed's study (2019) “The Impact of the Coronavirus (covid-19) Pandemic on the Algerian Reference Trends in Auditing Financial Statements"
The study aimed to determine the impact of Coronavirus delinquency on auditing methods on financial statements. The study relied on books and references to achieve the aims of the study. Among the most important results of the study: The publications of international auditing standards focus on the accounting disclosure of any information that affects the reliability of the audit procedures under the Corona pandemic, and that the availability of the minimum accounting disclosure of the effects of Corona helps in developing audit procedures in light of the Corona pandemic. Among its most important recommendations: Provide additional guidance that enables account portfolios to obtain the most convincing elements about the validity and credibility of disclosures in light of the spread of the pandemic.
Abdullah's study (2020) “The position of Accounting Organizations on the Effects of the COVID 19 Pandemic
The study aimed to present the position of professional accounting organizations on determining the impact of Corona pandemic on the auditing and accounting process. The study relied on referring to international auditing standards and the disclosure process required dealing with Coronavirus. Among its most important results: the existence of appropriate disclosures for accountants and auditors dealing with the impact of Corona delinquency. It also concluded that there is a continuous development in professional organizations to deal with the effects of Corona pandemic. Among the most important of its recommendations: The necessity of having special standards in how to deal with Corona delinquency, and that are consistent with the regulations and instructions available in the country.
Eljebli (2020) Study “The Impact of COVID 19 on Reconstructing and Auditing Financial Statements"
The study aimed to determine the effect of the spread of Coronavirus on the preparation and auditing of financial statements, and the study relied on distributing the questionnaire electronically to the auditors. Among the most important results of the study: Covid 19 has a clear effect on accounting practices and auditing practices, and there is also an impact on preparing and auditing financial statements. Among its most important recommendations: the necessity of activating the role of audit committees in finding and determining the risks of auditing in light of Corona delinquency and finding appropriate solutions to them.
Theoretical Framework
Coronavirus has created new jobs for external auditors, such as making sure that corporate or customer data is not compromised, using information technology tools used to review or auditing customer data remotely, and using cloud accounting. These tasks increased the efforts required of auditors to perform the audit tasks efficiently and effectively. It also increases the risks that the auditor may face when auditing clients' financial statements. (Sharaf, 2020)
Definition of External Audit
External audit refers to “reviewing documents from the evaluation of the evidence to determine the extent to which these documents are in compliance with the accounting principles and assumptions by a neutral and independent person from outside the organization” (Arenz, 2016).
Objectives of the External Audit
The objectives of the external audit change as required by the economic, technological and legal changes in the surrounding environment, which made them comprehensive goals for all stakeholders' requirements. Therefore, the objectives of the external audit can be summarized as follows: (Al-Din, 2015).
1. Ensuring the correctness and accuracy of the accounting data installed in the books of the project.
2. Obtaining a neutral technical opinion on matching the financial statements to what is recorded in the books and records.
3. Reducing the chances of errors and fraud through sudden auditor visits to the project and strengthening the internal control systems used by him.
4. Reducing the risk of auditing due to the difficulty of estimating the effects of the audit process on the client or facility subject to auditing.
The Risks that External Auditors Face when Dealing with Coronavirus
The Concept of Risk
The American Internal Auditing Institute distinguished between risk analysis and risk assessment through the following: (Alhosban, 2015).
1. Risk assessment, which is a regular process of evaluating and integrating professionals' judgments about the likelihood of inappropriate conditions and events.
2. The risk analysis is what provides the meaning, distinction and complementarity of the experts ’judgments to develop the audit work. Whereas, the list of risks provided by the auditor and supported by management must go through the following stages:
a. Analyzing and assessing risks.
b. Analysis of the probability of monetary loss resulting from the risks and the effects resulting from it.
c. Using the same programs used in other companies in order to take advantage of the benefits that can be obtained, such as: reducing the cost of programs, application development and maintenance, support from other users, and ease of presence of employees.
The Risks Facing External Auditors in Light of the Corona Delinquency
Auditors' assessments and responses to the risks of financial data misstatement and fraud are critical to the quality of an audit. Risk assessments differ in the current environment from any other, as customers deal with significant changes in their business, business environment and the economy in general as a result of COVID-19. Despite the added complexities, auditors must continue to focus on high-quality audits that fully meet the standards of objectivity. Therefore, the most important risks facing auditors in light of Corona delinquency are the following: (Murphy, 2020).
1. Risks of the nature of the relationship with new and existing clients: To assess risk, auditors must understand the client's industry, operations, and capital structure. “There are different risk assessments in industries such as restaurants or real estate which have a very high risk due to the pandemic.
2. Risks of working in the field of remote auditing: The nature of the remote audit work contributed to creating difficulties in the audit process, which is the difficulty of sitting directly with accountants or internal auditors, in addition to the difficulty of meeting the owners of companies to obtain information that helps the audit process.
3. Risks related to internal control: Changes in operations and office closures as a result of the epidemic greatly affect controls and risk assessments. If controls are not in place, the stakes are higher.
4. Risks of change in the nature of corporate operating practices: remote work has led to changes in how auditors work, regardless of the size or location of the office.
5. Forecasting risk: Predictability has been difficult for clients due to the uncertainty about the economy and the epidemic and creates risks in accounting areas that depend on the expected results.
6. Risks of changes in the issues of challenges facing accounting: There are risks from Corona delinquency that have affected the nature of accounting practices, such as risks related to accounting estimates, risks of the continuity process in applying accounting principles from one period to another, government aid, and the risks of theft and embezzlement.
External Audit Procedures to Deal with Corona Delinquency Risks
Corona delinquency has become a reality that must be dealt with at the level of countries in general, and this in turn necessitated the auditor to take measures that help mitigate the risks of Corona delinquency, and among the most important of these methods: (Delalio 2020).
1. Using cloud accounting in operating and auditing financial operations.
2. Computerizing the accounting procedures as fully as possible and trying to get rid of paper documents as much as possible under procedures agreed upon with the audit committee or the owners of the companies.
3. Contracting with external parties to carry out accounting work for companies and to conduct accounting business, and this facilitates the external auditor to reach the required employees according to remote communication tools.
4. Restructuring the financial operations that take place inside the companies by focusing on the financial operations that have a great impact on the company.
5. The use and application of the principle of materiality in dealing with accounting operations.
6. Auditors use data tools to extract customer general ledger data and perform analysis remotely, which takes some of the burden of providing audit support from clients. Auditors can look at large amounts of data and relationships, filter the data to identify and focus on high-risk transactions, and formulate responsive audit steps.
7. Enhancing electronic disclosure and its requirements for remote management of accounting business through the use of information technology tools that have a positive role in practicing remote audit procedures in light of Corona delinquency.
Accounting Procedures that Can be Followed in Light of Corona Delinquency
There are some measures that accountants can take to mitigate the risks of Corona, which can be summarized as follows: (Whitehouse, 2020)
1. Allowing employees and accountants to manage their accounting business remotely by using special applications.
2. Making the necessary changes in the accounting agendas and informing the customer of that.
3. Using educational platforms or social media platforms to obtain documents and documents and try to reduce the handling of papers and paper documents as much as possible.
4. Avoid interviews with clients and officials and try to apply computerized or computer-based interviews as much as possible.
5. Take advantage of the features that can be applied from the cloud accounting to master the accounting business remotely.
Audit Risks Affected by Corona Delinquency
There are some risks related to auditing, which can be summarized as follows: (Dohrer 2020)
1. Risks of inconsistency between regulations and instructions: The risk of non-compliance with laws and regulations may increase for some clients. During the pandemic, many small businesses have found it necessary to participate in various forms of federal economic stimulus financing, including programs enacted through pandemic relief legislation provided by the Coronavirus.
2. Reviewing accounting estimates: Another area that could represent increased risks for customers of the end of 2020 is the review of accounting estimates. The risks related to revenue recognition may be particularly acute with FASB ASC Topic 606, revenue from contracts with clients, in the first year of implementation for private companies that have adopted the new standard.
3. COVID-19 represents a true "perfect storm" of fraud risk, and auditors must be alert to the triangle of fraud risks: incentives or pressures, opportunities, and rationalization.
Responding to Coronavirus Pandemic Risks Affecting External Audit
An auditor should take the following actions to respond to audit risks: (Cristophere, 2020)
1. Auditor's responses to assessed risks require auditors to respond to the assessment by obtaining sufficient and appropriate audit evidence regarding the material risks assessed to be misrepresented, by designing and implementing appropriate responses to those risks.
2. The auditor shall evaluate whether the assertion level risk assessments of material misstatement remain appropriate.
3. Covid-19 in many cases will necessitate auditors to consider whether designing and implementing their responses to identified risks is still relevant or whether they need to be revised.
Evidence of Scrutiny in Light of Corona Delinquency
Audit evidence, requiring auditors to design and implement audit procedures to enable sufficient and appropriate audit evidence, from which to draw conclusions However, given the current limitations imposed by Covid-19, auditors in most, if not all cases, are no longer able to Visiting the premises of the controlled entity. This creates clear practical challenges for auditors needing to obtain physical forms of evidence. The use of technology can help auditors overcome these challenges. The auditor can use the following procedures to deal with audit evidence in light of the Coronavirus pandemic:
1. Participation of more than one member of the audit team during monitoring through videoconferencing equipment to enhance monitoring capabilities and mitigate risks.
2. Choose more items to test while observing than usual.
3. Taking snapshots (views or photos) during observation to reinforce the evidence.
4. The auditor must obtain appropriate evidence by focusing on important matters or items in the elements of the financial statements, as the company's financial position determines the nature of the audit procedures to obtain the appropriate audit evidence.
5. Attending the physical inventory count, unless it is not practical.
6. Executing audit procedures on the establishment's final inventory records to determine whether they accurately reflect the results of the actual inventory count.
7. Current Covid-19 limitations affect both the auditor and the organizations they audit, and in some cases, it may not be possible to take inventories at the end of the period. In such cases, auditors need to discuss with their clients whether an inventory count is to be conducted at a later date and determine the feasibility of attending the physical or hypothetical auditor as mentioned above.
8. In addition, auditors need to implement audit procedures to assess the validity of changes recorded between the inventory date and the date of the financial statements. Changes between the two dates will mainly depend on the industry in which the company operates. In cases where a business is temporarily halting their operations, the changes may not be significant and thus not much should cause a problem for auditors performing their audit procedures, although this may still affect the valuation out of stock. However, where trade is possible, changes between the end of the period and the number of dates may be significant and this may be exacerbated if the period between dates is long.
The Proposed Framework for the External Auditor's Handling of the Challenges Facing External Auditing in Light of the Corona-Covid-19 Pandemic.
1. Many people are currently working from home to help prevent the spread of the novel coronavirus (COVID-19). External auditors are no exception. Fortunately, in recent years, most audit firms have invested in technology and training to facilitate remote auditing procedures. These efforts helped lower audit costs, enhance flexibility and reduce disruptions to business operations. However, auditors haven't faced a situation where everything needs to be done remotely (IFAC, 2020).
2. However, remote auditing still isn't ideal for everything. The American Institute of Certified Public Accountants (AICPA) has identified the following aspects of audit work that may pose challenges when performed remotely (Fench, 2020).
- Internal controls testing. Auditing standards require an understanding of how employees handle transactions as well as testing to determine if controls are appropriately designed and effective. If employees now work from home, your company's risk and control environment may have changed from previous periods.
- Inventory notes. Auditors usually visit company facilities to monitor physical inventory counting procedures and compare independent test accounts to company accounting records. Stay-at-home policies during a pandemic (whether government or company mandated) may prevent both external auditors and company employees from conducting physical censuses.
- Management inquiries. Auditors are trained to monitor body language and judge the dynamics among co-workers during their interviews with company employees to assess fraud risks.
3. The transition to remote audit coordination requires flexibility, including a willingness to incubate the technology needed to share, review and analyze relevant documents. You can facilitate this transition by:( Dohrer, 2020).
- Response: Answer all remote requests from auditors in a timely manner. If the principal is to be leaving the office for a long time, give the audit team the contact information for the lead person's backup.
- Use the right tools: Before remote auditors begin "fieldwork", request a list of programs and platforms that will be used to interact and share documents with internal staff. Give the appropriate employees access and authorization to share audit-related data from your company's systems. Work with IT professionals to address any security concerns they may have about sharing data with remote auditors.
- Performance measurement: Ask the engagement partner to explain how the company is tracking the performance of auditors remotely and reporting the team's progress to its internal accounting staff.
4. Auditors are under time pressure with clients focusing on managing the epidemic and subsequent developments. “As an auditor, we are likely to enter a very difficult period in terms of assessing the going concern basis and all associated disclosure requirements in our clients' accounts as more and more companies are under mounting financial pressure. (El Hajj, 2020).
5. When conducting the external auditing process, there are some audit procedures in light of Janjeh Corona, which can be summarized as follows: (Bisias, 2019)
- Adequacy and appropriateness of audit evidence (including inventory counts, confirmations, understanding of the entity and its environment, planned audit approach and accounting estimates)
- Professional suspicion and material misstatement due to fraud and subsequent events
- Continuity (including physical uncertainty)
- Auditor reports
After the issue of the auditor’s role in dealing with Corona delinquency has been addressed, the results of the field study will be studied, specifically the following topics is discussed: the characteristics of the study sample individuals, the discussion of the statistical results through the arithmetic mean and the discussion of a test for the hypotheses and the alpha reliability test.
Reliability and Validity
The Alpha Reliability Test was used to find the degree of internal consistency in the answers of the study sample, whose range is from 0 to 1, and the minimum dependence on the results and recommendations of the study is 70%, and the alpha value according to the responses of the study sample is 82%, which is higher than the minimum This means that there is truthfulness and consistency in the answers of the study sample individuals to the paragraphs of the questionnaire.
Characteristics of the Study Sample Individuals
Personal Information
See Table 1
| Table 1 The Study Sample According to The Qualifications Variab |
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|---|---|---|
| Title | Frequent | Percentage |
| University | 46 | 60% |
| Master | 20 | 26% |
| PhD | 10 | 14% |
| Total | 76 | 100% |
It is noted from Table (1) that most of the study sample hold a bachelor’s degree of various scientific qualifications. It is also noticed that postgraduate studies have a good percentage, which is 40%. This is a positive indicator and gives some credibility to relying on the results and recommendations of the study and may give a positive indication of the validity the answer and that the paragraphs of the questionnaire were clear.Now, See Table 2.
| Table 2 The Study Sample According to The Years Of Experience Variable |
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|---|---|---|
| Title | Frequent | Percentage |
| Less than 5 years | 25 | 30% |
| 5-less than 10 years | 36 | 52% |
| 10 years and more than | 15 | 18% |
| Total | 76 | 100% |
It is noted from Table (2) table that most of the study sample members are from the category of experience 5 - less than 10 years, which is an important period for judging the hypotheses and variables of the study and may give it a positive advantage in the degree of validity and stability of the study tool.
Study Population and Sample
The study population consists of external auditors in Jordan. As for the study sample, it consists of audit offices in Amman. As a result, it was distributed 102 and the recovery rate (81/102) 81% was retrieved, and the number of questionnaires was excluded 5 questionnaires due to their lack of validity for analysis.
Decision Base
The five-year Likert system was used in the design of the questionnaire, which consisted of five options for each of the paragraphs of the questionnaire. For the purposes of statistical analysis, the options coding system was used so that the following symbols were given:
1. A very high score, given by code 5,
2. A high score, given by the symbol 4,
3. Medium score, given by code 3,
4. A low score given by the symbol 2 and
5. A very low score, given by the symbol 1.
Therefore, the hypothetical average for accepting or rejecting the paragraph or hypothesis will be the hypothesis mean 3 and it was obtained by using the sum of symbols and dividing them by the number of options, i.e. (5+4+3+2+1)/5 is equal to 3.
Therefore if the middle of the paragraph or hypothesis is greater than Or equal to the number 3, then this means acceptance of the paragraph or hypothesis, and the greater the mean, the greater the degree of acceptance and confirmation of the study sample of the existence of that variable, and on the other hand, the smaller the mean of the paragraph or hypothesis than the number 3, this means that the individuals of the study sample confirm that the paragraph does not exist in practice
The greater the difference from the hypothesis, the greater the study sample's assurance that there is no effect of that variable in the bank in which the study sample members work.
Discussing the Statistical Results with Hypotheses and Study Variables
See Table 3
| Table 3 Opinions of The Study Sample With Variable of The Risks Facing Scrutiny in Light of The Corona Delinquency |
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|---|---|---|---|---|
| No | Paragraph | Average | Standard deviation | rank |
| 1 | The auditor is based on an understanding of the client's industry, operations, and capital structure under COVID-19 | 3.85 | 0.55 | 3 |
| 2 | The nature of the remote audit work contributed to creating difficulties in the audit process, which is the difficulty of sitting directly with accountants or internal auditors. | 4.06 | 0.76 | 1 |
| 3 | Changes in operations and closing of auditing offices as a result of the pandemic are greatly affecting controls and risk assessments in light of the Coronavirus pandemic | 2.19 | 0.49 | 5 |
| 4 | Remote work for auditors has led to changes in how auditors operate, regardless of the size or location of the office under the Coronavirus pandemic. | 3.92 | 0.83 | 2 |
| 5 | The ability of auditors to forecast is difficult for clients due to uncertainty about the economy and the epidemic and creates risks in accounting areas that depend on expected results. | 2.64 | 0.66 | 4 |
| Average | 3.36 | 0.64 | ||
It is noted from the previous table that the second paragraph represents the highest average, and is represented by the nature of the remote audit work contributed to creating difficulties in the audit process, which is the difficulty of sitting directly with accountants or internal auditors and this means that remote audit has the effect of finding difficulties in completing the audit task in light of the Corona delinquency, and these problems are represented in the difficulty of meeting with accountants to obtain information about some financial events. It is also noted that the fourth paragraph represents the second degree of acceptance of the study sample with an average 3.92, represented by Remote work for auditors has led to changes in how auditors operate, regardless of the size or location of the office under the Coronavirus pandemic, this means that the Corona contributed to changing the audit process and contributed to creating new jobs for external auditors, as well as canceling some audit tasks. It is also noted that the standard deviation is less than the number one, and that’s means that the degree of deviation from the average answer for each paragraph and for the paragraphs in general is acceptable and there is no significant dispersion.( Table 3 ) and now see Table 4.
| Table 4 Opinions of The Study Sample With Variable Audit Procedures |
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|---|---|---|---|---|
| No | Paragraph | Average | Standard deviation | rank |
| 1 | Auditors use cloud accounting in operating and auditing financial operations | 4.25 | 0.85 | 2 |
| 2 | The auditor will fully computerize the audit procedures as much as possible and try to get rid of paper documents as much as possible | 3.49 | 0.91 | 4 |
| 3 | External parties are contracted to carry out accounting work for companies, and this facilitates the external auditor to reach the required employees according to remote communication tools. |
2.48 | 0.61 | 7 |
| 4 | The auditor restructures the financial operations that take place within the companies by focusing on the financial operations that have a significant impact on the company | 3.19 | 0.72 | 5 |
| 5 | The auditor uses and applies the principle of materiality in dealing with accounting operations | 3.86 | 0.43 | 3 |
| 6 | Auditors use data tools to extract customer general ledger data and perform analysis remotely | 2.67 | 0.66 | 6 |
| 7 | The auditor is interested in enhancing electronic disclosure and its requirements for managing accounting business remotely through the use of information technology tools. | 4.36 | 0.73 | 1 |
| 3.47 | 0.7 | |||
It is noted from the previous table that the seventh paragraph represents the highest average 4.36, and is represented by the auditor is interested in enhancing electronic disclosure and its requirements for managing accounting business remotely through the use of information technology tools. This means that information technology tools have a positive effect in completing the audit task in light of the Corona pandemic. It is also noted that the fourth paragraph represents the second degree of acceptance of the study sample with an average 4.25, represented by Auditors use cloud accounting in operating and auditing financial operations. This means that the use of the cloud accounting method has a positive role in applying the accounting and it helps the external auditors. It is also noted that the standard deviation is less than the number one, and that’s means that the degree of deviation from the average answer for each paragraph and for the paragraphs in general is acceptable and there is no significant dispersion.( Table 4 )
Test Hypotheses of the Study
Results of the first hypothesis test of the study Which it is " external auditors in Jordan take the risks facing auditing in light of the Coronavirus pandemic".
The One Way T-Test was used for the first hypothesis and the test results were according to the following Table 5:
| Table 5 The Results of The First Hypothesis Test |
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|---|---|---|---|---|
| Calculated T | Schedule T | Significant | Result of alternative hypothesis | Average |
| 7.9 | 7.799 | 0 | Accept | .3 |
It is noted from Table No. (5) That the decision rule is to accept the null hypothesis (H0) if the computed value is less than the tabular value, and the null hypothesis (H0) is rejected if the computed value is greater than the tabular value. Thus, we reject the null hypothesis and accept the alternative hypothesis that is external auditors in Jordan take the risks facing auditing in light of the Coronavirus pandemic.
Results of the second hypothesis test of the study which it is “external auditors in Jordan implement external audit procedures to deal with Corona delinquency risks".
The One Way T-Test was used for the second hypothesis and the test results were according to the following Table 6:
| Table 6 The Results of The Second Hypothesis Test |
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|---|---|---|---|---|
| Calculated T | Schedule T | Significant | Result of alternative hypothesis | Average |
| 11.92 | 7.799 | 0 | Accept | .9 |
It is noted from Table No. (6) That the decision rule is to accept the null hypothesis (H0) if the computed value is less than the tabular value, and the null hypothesis (H0) is rejected if the computed value is greater than the tabular value. Thus, we reject the null hypothesis and accept the alternative hypothesis that is external auditors in Jordan implement external audit procedures to deal with Corona delinquency risks
Results
The study found the following results:
1. There are new tasks and jobs that appeared for auditors with the emergence of Corona delinquency, which is to ensure the reliability of computer networks and the need to devise tools for communicating with clients.
2. The international auditing standards are concerned with the impact of Corona delinquency on the external audit work environment by strengthening disclosure processes in the financial statements or adding new paragraphs to standards related to Corona delinquency.
3. Cloud accounting is one of the important things that must be followed during the impact of Corona delinquency, since it depends on monitoring customer requirements remotely or conducting accounting and auditing operations from different places where customers are located, and this helps to find divergence.
4. Information technology tools, big data, and social media tools have a positive impact on the efficient and effective implementation of audit procedures, and to achieve remote audits.
5. Many people are currently working from home to help prevent the spread of the new Coronavirus (COVID-19). External auditors are no exception. Fortunately, in recent years, most audit firms have invested in technology and training to facilitate remote auditing procedures. These efforts helped lower audit costs, enhance flexibility and reduce disruptions to business operations. However, auditors haven't faced a situation where everything needs to be done remotely .
6. The application of the principle of materiality must be applied in the event of Corona delinquency by focusing on the important items in the financial statements, and adopting the method of statistical samples to implement the audit procedures.
7. The nature of the remote audit work contributed to creating difficulties in the audit process, which is the difficulty of sitting directly with accountants or internal auditors.
8. Remote work for auditors has led to changes in how auditors operate, regardless of the size or location of the office under the Coronavirus pandemic.
9. The auditor is interested in enhancing electronic disclosure and its requirements for managing accounting business remotely through the use of information technology tools.
Based on the results of the study, the following recommendations can be made:
1. The necessity of studying the accounting principles and determining the principles that must be modified so that they can be applied in light of the Corona pandemic.
2. The need to expand the application of cloud accounting, develop its methods, and take advantage of the advantages that can be achieved in applying accounting and auditing methods in light of the Corona delinquency.
3. The necessity of having clear standards to apply the principles and procedures of auditing in light of the Corona delinquency through accounting organizations and global and local auditing bodies.
4. The necessity to keep pace with the regulations and instructions so that they can be applied in light of Corona delinquency so that there is no contradiction in it.
5. The necessity of using social media tools as much as possible in completing auditing procedures and using information technology tools that can be used remotely in achieving the auditing process according to the conditions agreed upon with clients.
6. External parties are contracted to carry out accounting work for companies, and this facilitates the external auditor to reach the required employees according to remote communication tools.
7. Auditors use data tools to extract customer general ledger data and perform analysis remotely.
8. The ability of auditors to forecast is difficult for clients due to uncertainty about the economy and the epidemic and creates risks in accounting areas that depend on expected results.