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PERCEPTIONS OF ACCOUNTING INFORMATION USERS ABOUT THE TYPE OF AUDIT FIRM: THE CASE OF JORDAN

International Journal of Commerce and Management

ISSN: 1056-9219

Article publication date: 1 January 1999

137

Abstract

This paper deals with the preferences of creditors and investors in Jordan regarding the credibility and use of financial statements audited by accounting firms with international affiliations compared to local accounting firms. Audit firms in Jordan are divided into two groups. Group 1 consists of audit firms with affiliation with an international firm. Group 2 consists of audit firms with no international affiliation. A questionnaire elicited preferences of creditors and investors for Group 1 and Group 2 audit firms. This questionnaire was administered to a sample of investors and creditors. The results suggest that a preference by both creditors and investors for financial statements audited by accounting firms with international affiliation. The factors leading to such a preference are also indicated. The results suggest that affiliation with international audit firms, application of international standards, personal contacts and the long experience of auditors are the most important factors that make both investors and creditors prefer Group 1 over Group 2 audit firms.

Citation

Al‐Omari, A.M., Jahmani, Y.F. and Salimi, A.Y. (1999), "PERCEPTIONS OF ACCOUNTING INFORMATION USERS ABOUT THE TYPE OF AUDIT FIRM: THE CASE OF JORDAN", International Journal of Commerce and Management, Vol. 9 No. 1/2, pp. 20-34. https://doi.org/10.1108/eb047380

Publisher

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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