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Abstract

This study aimed to develop a system for corporate governance in ‎Jordanian stock corporations to reinforce the auditor's independence, test ‎her ‎‏/‏his awareness of the concept of corporate governance and to ‎determine the impact of the effectiveness of the system in corporations ‎and the independence of the auditor. To achieve that, a questionnaire was ‎designed and distributed to (120) auditors, and some interviews with ‎auditors were made. After the analysis of the questionnaire, the following ‎conclusions were reached: The Jordanian auditor was well aware of the ‎corporate governance concept, interested in studying and evaluating the ‎effectiveness of the system in the corporation under examination: the ‎effectiveness of the system of corporate governance positively affects the ‎independence of the auditor. The constituents of the corporate ‎governance system, such as the laws that support the corporate ‎governance; document, that specifies the authorities and responsibilities ‎of each staff member positively affect the independence of the auditor. ‎The principles of the system of corporate governance related to the ‎apparent and virtual independence of the board of directors, such ‎focusing on the integrity and clarity of the corporation's financial ‎reporting, reviewing annual operating plans and budgets, advising chief ‎executive officer and senior management affect positively the ‎independence of the auditor. The division of the board of directors to ‎committees such as audit committee, corporate governance committee ‎and compensation committee affect positively the independence of the ‎auditor. The principles of the corporate governance system related to the ‎chief executive officer (CEO) and senior management such as adherence ‎to ethics, identifying, and managing risks, affect positively the ‎independence of the auditor. The principles of the corporate governance ‎system related to the relationships with stakeholders such as ‎shareholders, employees and community affect .positively the ‎independence of the auditor.‎