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Auditng Uncertainty Of The Accounting Estimates In Fair Value Accordance With The Procedures Of The International Standards On Auditng No.540 Filed Study On The Audit Offices Operating In Jordan

Author

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  • AHMAD ADEL JAMIL ABDALLAH

    (Al-Zaytoonah University of Jordan, Faculty of Business, Accounting Department)

  • MUSAB SHAREEF SALAMEH

    (Al-Zaytoonah University of Jordan, Faculty of Business, Accounting Department)

Abstract

The aim of this study is to dissect how auditors comprehend the audit responses provided in ISA 540, the outright purpose is to inspect how the auditors perform the auditing uncertainty of accounting estimates in fair value. The researchers distribute a questionnaire to the auditing offices operating in Jordan (311 offices) to know how auditors comprehend the audit responses provided in ISA 540, questionnaires distributed to all these (150) auditors selected randomly, (117) questionnaires were returned. The study found the auditors in general compliance with procedures followed in international standard on auditing 540 when auditing cases of the uncertainty of accounting estimates with a high level except examination the management's assumptions about accounting estimates came with average level which may appear from management bias, then we found that the auditors compliance with procedures for measurement and disclosures in the financial statements.

Suggested Citation

  • Ahmad Adel Jamil Abdallah & Musab Shareef Salameh, 2019. "Auditng Uncertainty Of The Accounting Estimates In Fair Value Accordance With The Procedures Of The International Standards On Auditng No.540 Filed Study On The Audit Offices Operating In Jordan," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 16(1), pages 42-52.
    • Handle: RePEc:neo:journl:v:16:y:2019:i:1:p:42-52
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    References listed on IDEAS

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    1. Kang, Yoon Ju & Trotman, Andrew J. & Trotman, Ken T., 2015. "The effect of an Audit Judgment Rule on audit committee members’ professional skepticism: The case of accounting estimates," Accounting, Organizations and Society, Elsevier, vol. 46(C), pages 59-76.
    2. DeZoort, F. Todd & Hermanson, Dana R. & Houston, Richard W., 2003. "Audit committee support for auditors: The effects of materiality justification and accounting precision," Journal of Accounting and Public Policy, Elsevier, vol. 22(2), pages 175-199.
    3. Emily E. Griffith & Jacqueline S. Hammersley & Kathryn Kadous & Donald Young, 2015. "Auditor Mindsets and Audits of Complex Estimates," Journal of Accounting Research, Wiley Blackwell, vol. 53(1), pages 49-77, March.
    4. Salem Lotfi Boumediene & Emna Boumediene & Ikram Amara, 2017. "The Impact Of Fair Value On Audit Quality: Evidence From Tunisia," Accounting & Taxation, The Institute for Business and Finance Research, vol. 9(1), pages 29-38.
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    Cited by:

    1. Osama Samih Shaban & Abdallah Izzat Barakat, 2023. "Evaluation of Internal Audit Standards as a Foundation for Carrying out and Promoting a Wide Variety of Value-Added Tasks-Evidence from Emerging Market," JRFM, MDPI, vol. 16(3), pages 1-13, March.

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    More about this item

    Keywords

    Auditing uncertainty; accounting estimates; Fair Value; ISA 540;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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