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The Role of Internal Control Components on Financing Activities in Jordan Islamic Bank (North Region)

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  • Hani Ali Aref Al-Rawashdeh

Abstract

The current study aims to define the role of internal control components on financing activities in Jordan Islamic Bank. The study population was made of all the funding granting committees¡¯ employees in Jordan Islamic Bank (North region); (48) employees in (2017). The study sample included the study population as a whole, but due to the absence of some employees, the study sample was made of (40) employees as a result. To accomplish the study objectives, both; the descriptive and analytical approaches have been used, besides (T-test) and simple linear regression analysis. The study reached several results, the most important among them were: there is a statistically significant role for the internal control components on the financing activities in Jordan Islamic Bank (North region) at Sig. (¦Á¡Ü0.05), with a high level. there is a statistically significant role for the internal control environment over the financing activities in Jordan Islamic Bank (North region) with a very high level at Sig. (¦Á¡Ü0.05), there is a statistically significant role for the internal control activities accredited by the internal control committees over the financing activities in Jordan Islamic Bank (North region) with a very high level at Sig. (¦Á¡Ü0.05), there is a statistically significant role for the communication and information system applied by the internal control committees over the financing activities in Jordan Islamic Bank (North region) with a very high level at Sig. (¦Á¡Ü0.05), there is a statistically significant role for the follow-up system adopted by the internal control committees over the financing activities in Jordan Islamic Bank (North region) with a very high level at Sig. (¦Á¡Ü0.05), and there is a statistically significant role for the risk assessment system applied by the internal control committees over the financing activities in Jordan Islamic Bank (North region) with a medium level at Sig. (¦Á¡Ü0.05). Based on these results, the researcher recommended the importance of developing the internal control environment and increasing its efficiency, besides, maintaining the quality of policies and procedures that helps guaranteeing executing the management views and developing the risk assessment system.

Suggested Citation

  • Hani Ali Aref Al-Rawashdeh, 2018. "The Role of Internal Control Components on Financing Activities in Jordan Islamic Bank (North Region)," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(2), pages 57-66, February.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:2:p:57-66
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    References listed on IDEAS

    as
    1. Mu’azu Saidu Badara, 2013. "Impact of the Effective Internal Control System on the Internal Audit Effectiveness at Local Government Level," Journal of Social and Development Sciences, AMH International, vol. 4(1), pages 16-23.
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    More about this item

    Keywords

    internal control environment; internal control activities; information and communication; risks assessment; follow-up; financing activities; Jordan Islamic Bank;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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