Informal interactions between audit committees and internal audits: Evidence from firms on the Amman Stock Exchange

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Abstract

This research investigates how informal exchanges between internal audit functions (IAF) and audit committees (ACs) develop within firms listed on the Amman Stock Exchange. The study relies on the perspectives of 157 internal audit professionals affiliated with Jordan’s Institute of Internal Auditors (IIA) chapter. Through regression analysis, we explore the role of six variables: three linked to the audit committee (expertise, independence, and size) and three from the internal audit side (independence, competency, and department size). Results suggest that all six factors contribute positively to the frequency and quality of informal communication. Independence and domain knowledge, in particular, stood out as strong enablers of open and effective interaction. These findings are especially relevant to developing governance systems like Jordan’s, where informal relationships often carry considerable weight in oversight processes. The results echo themes found in prior studies but offer regional nuance to help contextualize how informal governance operates in Middle Eastern firms (Sarens et al., 2013; Drogalas et al., 2019; Zaman & Sarens, 2013).

Keywords: Informal Interactions, Audit Committee Characteristics, Internal Audit Characteristics, Jordanian Companies

Authors’ individual contribution: Conceptualization — M.M.A. and R.Q.; Methodology — M.M.A. and R.Q.; Formal Analysis — M.M.A. and R.Q.; Investigation — M.M.A., R.Q., and A.A.Q.; Writing — Original Draft — M.M.A., R.Q., and A.A.Q.; Writing — Review & Editing — M.M.A., R.Q., and A.A.Q.; Project Administration — M.M.A. and A.A.Q.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, M42

Received: 02.05.2025
Revised: 07.08.2025; 20.08.2025; 08.12.2025
Accepted: 07.01.2026
Published online: 09.01.2026

How to cite this paper: Aleqab, M. M., Qawasmeh, R., & Al Qudah, A. (2026). Informal interactions between audit committees and internal audits: Evidence from firms on the Amman Stock Exchange. Journal of Governance and Regulation, 15(1), 75–83. https://doi.org/10.22495/jgrv15i1art7