Internal auditors are considered a valuable source of information since they are more familiar with the company and its environment. This study aimed to identify the relationship between internal and external audits affecting the quality of firms' reports. To achieve the objectives of the study, a 30-item questionnaire was developed and sent to 312 external auditors and managed to collect 276 (88.5%) properly filled questionnaires. Descriptive statistics and multiple regression were used to test the hypotheses of the study. The results show that Jordanian auditors perceived favorably the cooperation between internal and external auditors to enhance the quality of financial reporting. For instance, the results revealed positive and significant effect of objectivity in enhancing the level of cooperation between internal and external auditors in a way that increased the level of financial reporting quality. Moreover, the quality of financial reporting has been affected positively resulting in the positive effect of the technical competence of the internal audit’s work and professional care. Finally, the cooperation between the two auditing teams was noticeable through the nature and scope dimension that, in turn, increased the quality of financial reporting. Based on these results, external auditors are highly recommended to rely on internal audit works which could lead to enhance financial reporting quality.

There is a worldwide debate regarding the implementation of IPSAS due to the potential obstacles that may face governments when they start moving to the full accrual basis. Of equal importance is that each country has its own needs and thus it must be examined separately to find out the factors that may motivate or limit the effective adoption of IPSAS. This study, therefore, aims to explore the key success factors when it comes to adopting IPSAS in Jordan. A 39-item questionnaire was devised and sent to 500 employees who were working in public entity departments. Only 326 questionnaires were returned, yielding a response rate of 65.2%. The results suggested that the most important factors were local legislation and the infrastructure, while the training of staff came at the bottom of list. These results are important to regulators for drawing up a clear road map for transferring fully to IPSAS.