Title: Does human capital affect the implementation of ISQC 1 in audit firms of non-big 4? Evidence from Jordan

Authors: Zaid Jaradat; Ahmad Hardan

Addresses: Department of Accounting, School of Business, Al al-Bayt University, Mafraq 25113, P.O. Box 130040, Jordan ' Department of Accounting, University Malaysia Terengganu, Terengganu, Malaysia

Abstract: This study presents a framework determining the impact of human capital on ISQC 1 implementation, involving non-big 4 audit firms. The study sample comprised 162 external auditors from audit firms in Jordan. From the data analyses results, it was concluded that ISQC 1 variables of ethical requirements, acceptance, and continuance of client and human resources and engagement performance have positive relationship with human capital. Negative relationship was concluded for leadership and monitoring with human capital. Auditors in Jordan are lacking in number. The Jordanian policymakers and government need to improve the effectiveness and independence of the external auditors through new regulations and laws. Additionally, the auditing profession needs to regulated more, to safeguard the economy and social stability of the country.

Keywords: human capital; ISQC 1; audit firms; human capital theory; Jordan.

DOI: 10.1504/IJSOM.2024.138928

International Journal of Services and Operations Management, 2024 Vol.48 No.2, pp.192 - 212

Received: 10 Feb 2022
Accepted: 16 Mar 2022
Published online: 04 Jun 2024 *

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