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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JANURAY 2011
VOL 2, NO 9
1. Introduction
The current information revolution witnessed globally strengthened the position of
information besides human and material resources in running business organizations and
preserving available resources .
Providing information has become one of major fields that attract much interest of
researchers. Keeping in mind the information revolution worldwide, banking sectors has
widely developed and banking operations greatly widened and ramified to the degree that
necessitated greater attention to be given to Accounting Information Systems (AIS), which
motivate internal control mechanisms a bank. Basically, three kinds of control are practiced on
banking operations, namely: internal control initiated by bank administrators; external control
practiced by the central bank, known and bank of banks, and outside audit bureaus .
Internal control in a bank is recognized as an early alarm device for accounting and
management audit. From this perspective, an accounting system has a significant part to take
in control, basically internal control that as a core goal, maintenance bank assets could not be
achieved without proper accounting reports generated by the accounting system .
It is necessary, therefore, to consider the effect of Accounting Information Systems (AIS) on
the effectiveness of internal control at Jordanian banks through such mechanisms as
accounting control, management control and internal check. Taking supervision on
commercial banks, the Central Bank of Jordan issued various regulations pertaining banking
control and organization including Electronic Banking regulations no. (8/2001), Banking
Risks regulations since 1980 through 1996, Preparation of Financial Data at Banks
regulations, Application of International Accounting Criteria, Banking Security regulations
since 1975 through 2000, Internal Control & Check Systems regulation since 1980 through
2002, in addition to Banking Act no. 28 of (2000) (Jordan Central Bank, 2003), and in 2004
the Jordan Central Bank also issued the Corporate Governance Guide for Jordanian
commercial banks.
2. Study Objectives
The primary purpose of this study is to identify effect of Accounting Information System
(AIS) on effectiveness of internal control in Jordanian commercial banks. This major
objective will be accomplished by researching the following sub-goals:
Demonstrating the effect of Accounting Information Systems (AIS) on effectiveness of the
accounting control in Jordanian commercial banks
Demonstrating the effect of Accounting Information Systems (AIS) on effectiveness of the
management control in Jordanian commercial banks
Demonstrating the effect of Accounting Information Systems (AIS) on effectiveness of the
internal control in Jordanian commercial banks
3. Limitations
Sometimes it was very difficult to access to detailed accurate information
Higher confidentiality in banks and lack of disclosure regarding some kinds of information.
Voluminous banking operations and workload limits time available for auditors and staffers at
Internal Auditing Dept. respond properly to the questionnaires .
Some staffers at Internal Auditing Dept. refused respond to questionnaires without approval
from their bosses .
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