This study investigated the effect of corporate governance mechanisms on the internal audit quality of industrial companies listed on Amman stock exchange. It aimed to examining the relationship between a set of governance mechanisms that include board size, the proportion of independent non-executive directors, the number of audit Committee meetings, and corporate leverage ratio and internal audit quality in industrial companies listed on Amman stock exchange.
The company's internal audit quality was measured by measuring the extent of application Internal audit standards in the company, and the researcher prepare a questionnaire, that measures the extent of application Internal audit standards in the company, where data of corporate governance mechanisms was collected from the financial year report 2015.
The study population consisted of all industrial companies listed on the Amman Stock Exchange, but the researcher used randomly sample from 20 companies from industrial companies, the researcher was distribute of the questionnaire for two internal auditors for each company, but what was subjected to statistical analysis only (29). Regression analysis was used to determine whether the existing corporate governance mechanisms influence the internal audit quality or not.
Results showed that the proportion of independent non-executive directors, the number of audit Committee meetings, and corporate leverage ratio affect on the company's internal audit quality, but the board size didn't affect on the company's internal audit quality.