The Jordanian Corporate Governance Code (JCGC) was first enacted in 2004 and revised in 2017. It offers standards for ethical and decent practices in the corporates. Law in Jordan in 2009 has enforced the formation of an audit committee for all listed companies. Literature has substantiated that the audit committee characteristic (ACCs) impact the quality of financial reporting. This work investigates the role of ACCs in lessening the prospect of corporates in obtaining modified audit opinion in the context of Jordan. Four ACC problems (expertise, independent, meeting, and size) have been studied and the modified audit opinion. The total sample of 117 listed companies on the Amman Stock Exchange (ASE) was studied. The relationship between the modified audit opinions (dependent variable), and ACCs (expertise, independent, meeting, and size; as independent variables) was analyzed using logistic regression. The ACCs is projected to effectively improve the quality of financial reporting, and thus, decrease the prospect of corporate in obtaining modified audit opinion. The findings according to the listed companies from 2012 to 2017 in Jordan showed that audit committee (AC) expertise validates this likelihood. Lastly, there is no effect of AC independent, size, and the number of meetings held on the modified audit opinion. General, the findings have policy implications on enhancing corporate governance (CG) efficacy concerning the quality of financial reporting.
| Published in | Journal of Finance and Accounting (Volume 7, Issue 3) |
| DOI | 10.11648/j.jfa.20190703.14 |
| Page(s) | 95-106 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2019. Published by Science Publishing Group |
Audit Committee, Corporate Governance Guide, Modified Audit Opinion, Type of Auditor’s Report
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APA Style
Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. (2019). The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan. Journal of Finance and Accounting, 7(3), 95-106. https://doi.org/10.11648/j.jfa.20190703.14
ACS Style
Saleh Zaid Alkilani; Wan Nordin Wan Hussin; Basariah Salim. The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan. J. Finance Account. 2019, 7(3), 95-106. doi: 10.11648/j.jfa.20190703.14
AMA Style
Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan. J Finance Account. 2019;7(3):95-106. doi: 10.11648/j.jfa.20190703.14
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Download@article{10.11648/j.jfa.20190703.14,
author = {Saleh Zaid Alkilani and Wan Nordin Wan Hussin and Basariah Salim},
title = {The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan},
journal = {Journal of Finance and Accounting},
volume = {7},
number = {3},
pages = {95-106},
doi = {10.11648/j.jfa.20190703.14},
url = {https://doi.org/10.11648/j.jfa.20190703.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20190703.14},
abstract = {The Jordanian Corporate Governance Code (JCGC) was first enacted in 2004 and revised in 2017. It offers standards for ethical and decent practices in the corporates. Law in Jordan in 2009 has enforced the formation of an audit committee for all listed companies. Literature has substantiated that the audit committee characteristic (ACCs) impact the quality of financial reporting. This work investigates the role of ACCs in lessening the prospect of corporates in obtaining modified audit opinion in the context of Jordan. Four ACC problems (expertise, independent, meeting, and size) have been studied and the modified audit opinion. The total sample of 117 listed companies on the Amman Stock Exchange (ASE) was studied. The relationship between the modified audit opinions (dependent variable), and ACCs (expertise, independent, meeting, and size; as independent variables) was analyzed using logistic regression. The ACCs is projected to effectively improve the quality of financial reporting, and thus, decrease the prospect of corporate in obtaining modified audit opinion. The findings according to the listed companies from 2012 to 2017 in Jordan showed that audit committee (AC) expertise validates this likelihood. Lastly, there is no effect of AC independent, size, and the number of meetings held on the modified audit opinion. General, the findings have policy implications on enhancing corporate governance (CG) efficacy concerning the quality of financial reporting.},
year = {2019}
}
TY - JOUR T1 - The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan AU - Saleh Zaid Alkilani AU - Wan Nordin Wan Hussin AU - Basariah Salim Y1 - 2019/07/04 PY - 2019 N1 - https://doi.org/10.11648/j.jfa.20190703.14 DO - 10.11648/j.jfa.20190703.14 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 95 EP - 106 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20190703.14 AB - The Jordanian Corporate Governance Code (JCGC) was first enacted in 2004 and revised in 2017. It offers standards for ethical and decent practices in the corporates. Law in Jordan in 2009 has enforced the formation of an audit committee for all listed companies. Literature has substantiated that the audit committee characteristic (ACCs) impact the quality of financial reporting. This work investigates the role of ACCs in lessening the prospect of corporates in obtaining modified audit opinion in the context of Jordan. Four ACC problems (expertise, independent, meeting, and size) have been studied and the modified audit opinion. The total sample of 117 listed companies on the Amman Stock Exchange (ASE) was studied. The relationship between the modified audit opinions (dependent variable), and ACCs (expertise, independent, meeting, and size; as independent variables) was analyzed using logistic regression. The ACCs is projected to effectively improve the quality of financial reporting, and thus, decrease the prospect of corporate in obtaining modified audit opinion. The findings according to the listed companies from 2012 to 2017 in Jordan showed that audit committee (AC) expertise validates this likelihood. Lastly, there is no effect of AC independent, size, and the number of meetings held on the modified audit opinion. General, the findings have policy implications on enhancing corporate governance (CG) efficacy concerning the quality of financial reporting. VL - 7 IS - 3 ER -
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