The impact of Revised ISA 700: an international empirical comparison

Fakhfakh, Hamadi; Fakhfakh, Mondher

doi:10.1504/ijaape.2010.031612

Cited by 10 publications

(14 citation statements)

References 10 publications

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“…Correspondingly, auditors can issue a more severe modification by an adverse opinion or by a disclaimer of opinion [12]. In certain cases, the auditor's report content may be modified as detailed in ISA 700 [61,53,54]. The modification of report may be done either by appending an emphasis of matter paragraph or another matters paragraph while the auditor's opinion is still unmodified (unqualified), or by modifying an opinion, in cases in which an auditor alter his/her opinion to qualified or adverse, or issues a disclaimer opinion [114,115].…”

Section: Audit Opinion In Jordanmentioning

confidence: 99%

“…The form of modified audit opinion obtained by Jordanian corporates are unqualified with explanatory paragraph (41.8%), qualified (57.0%), adverse opinion (0.53%) and disclaimer opinion (0.53%), as shown in Table 2. Based on ISA [52,61,53,54], external auditor issues a modified audit opinion because of three main reasons: (1) inadequacy of the proper audit evidence, (2) going concern opinion, 3) a mixture inadequacy of the proper audit evidence and going concern opinion. Table 3 displays the reasons why external the auditor issued a modified audit opinion.…”

Section: Sample Selection and Descriptionmentioning

confidence: 99%

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Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

Alkilani¹,

Hussin²,

Salim³

2019

IJAFRM

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It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.

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Section: Audit Opinion In Jordanmentioning

confidence: 99%

Section: Sample Selection and Descriptionmentioning

confidence: 99%

Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

Alkilani¹,

Hussin²,

Salim³

2019

IJAFRM

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“…The harmonization of auditing reports is identified as the process, which aims at the reduction of the audit practices diversity and ensures their convergence in matter of the audit communicative means (Hussein, Bavishi, & Gangolly, 1986;Archer, Mcleay, & Dufour, 1989;King, 1999, Gangolly, Hussein, Seow, & Tam, 2002Fakhfakh & Fakhfakh, 2010). It aims at minimizing the divergences among the normative national regulations that govern the communications between the auditors and other stakeholders.…”

Section: Implication Of Results and Final Remarksmentioning

confidence: 99%

The readability of international illustration of auditor's report: An advanced reflection on the compromise between normative principles and linguistic requirements

Fakhfakh

2015

Journal of Economics, Finance and Administrative Science

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Content of audits Understandability Readability and determinants of legibility a b s t r a c tThe independent auditors periodically publish reports that summarize the audit results. These reports reinforce the financial communication and reliability of accounting information. International Standards on Auditing (ISA) determine the content of audit reports and the quality of audit results. Theoretically, the audit standardization must model intelligible and clear reports for readers. Compliance with linguistic principles contributes to the improvement of the structure of audit reports. In practice, the effectiveness of these reports is criticized because users do not understand the audit information. In order to improve the content of audit reports, International Federation of Accountants (IFAC) had revised International Standards on Auditor's report: ISA 700: Forming an opinion and reporting on financial statements. Linguistically, standardized audit reports could be unreadable by many users of financial statements. This article discusses the linguistic problems related to the preparation of reports. This discussion focuses on the audit reports which are illustrated by the International Standards on Auditing. The results show that in the presence of conflicting requirements (auditing standards versus linguistic principles), independent auditors must optimize the presentation of their reports.

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“…The fifth research stream examines harmonization of audit reports according to ISAs and concentrates on the degree of harmonization in the form and content of the audit report (Fakhfakh & Fakhfakh, 2010;Farrugia & Baldacchino, 2005;Gangolly, Hussein, Seow, & Tam, 2002;King, 1999). More precisely, on the wording characteristics of audit reports (Fakhfakh & Fakhfakh, 2007;Fakhfakh, Fakhfakh, & Pucheta-Martínez, 2008), the harmonization of audit reporting behavior in bankrupt companies (Sormunen, Jeppesen, Sundgren, & Svanström, 2013), and the linguistic performance and legibility of auditors' reports with modified opinions (Fakhfakh, 2016).…”

Section: Harmonization Of Audit Reports According To Isasmentioning

confidence: 99%

“…When examining IFRS compliance, prior studies indicated that there is an association between IFRS compliance and the use of ISAs. In addition, previous studies revealed that even when ISAs are adopted, several countries' audit reports are not perfectly conforming to the content and structure of reports standardized by the International Federation of Accountants (IFAC) (e.g., Fakhfakh & Fakhfakh, 2010). This can be due to the inconsistent implementation of ISAs.…”

Section: Introductionmentioning

confidence: 99%

Research on International Standards on Auditing: Literature synthesis and opportunities for future research

Haapamäki

Sihvonen

2019

Journal of International Accounting, Auditing and Taxation

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Research on International Standards on Auditing (ISAs) would greatly benefit from a research framework that categorizes the research streams related to ISAs and suggests areas for future research. This paper reviews the current research related to ISAs and develops a framework for analysis going forward. We identify seven main research streams: the development and history of ISAs; adoption of ISAs; association between national auditing standards and ISAs; financial reporting quality; audit reports; audit efficiency; and International Financial Reporting Standards (IFRS) compliance. For each research stream, the main results are summarized. At the conclusion of our literature reviews for each research stream, we suggest areas requiring further examination.

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The impact of Revised ISA 700: an international empirical comparison

Cited by 10 publications

References 10 publications

Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

The readability of international illustration of auditor's report: An advanced reflection on the compromise between normative principles and linguistic requirements

Research on International Standards on Auditing: Literature synthesis and opportunities for future research

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