The Role of External Auditors in Error and Fraud Discovered in the Financial Statements in the Jordanian Public Shareholding Companies (Industrial) (Published)
The Purpose of this study is to identify the role of external auditors in error and fraud discovered in the financial statements in the Public shareholding industrial Companies in Jordan. It is also about recognizing the role of external auditors with the duties assigned to them when auditing financial statements and discovering error and fraud in those statements. The current study also concentrated on the principle of confidentiality whether it should prevent the external auditor from informing the competent authorities about any fraud or error that takes place in the company they are auditing. The researcher chose a random sample of external auditors affiliated to Jordan Association of certified public Accountants, who audited the financial statements of the public shareholding industrial companies in Jordan. The study produced a set of important results and recommendations the most prominent of which was that there is a statistically significant relationship between the prompt reporting by the auditor about the existence of error or fraud cases and the maintenance of privacy towards the establishment they are reviewing its accounts. There is also a statistically significant relationship between uncovering error and fraud in the financial statements of the companies and the responsibility shouldered by the external auditor. The researcher also advises the shareholders to follow up the financial systems of the companies they participate in and to demand for periodical modernization of those systems.
Keywords: Auditors, Error, Financial Statement, Fraud, Jodan, Shareholding Company