The Legal Status Of The Auditor Of Financial Companies In The Jordanian Legislation - Comparative Theoretical Study | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Alsharu: Faculty of Law, Irbid National University, Jordan

2. Ahmad: Faculty of Law, Irbid National University, Jordan

3. Samed: Faculty of Law, Irbid National University, Jordan

4. Darawsheh: Faculty of Law, Irbid National University, Jordan; 4Faculty of Law, The World Islamic Sciences & Education University.Jordan

5. Akram: Faculty of Law, Irbid National University, Jordan

6. Bani Mostafa: Faculty of Law, Irbid National University, Jordan

7. Amjad: Faculty of Law, Irbid National University, Jordan

8. Alhamed: Faculty of Law, Irbid National University, Jordan

9. . Bashabsheh Ziyad: Faculty of Law, Irbid National University, Jordan

10. Khasswneh: Faculty of Law, Irbid National University, Jordan

11. Fadel: Faculty of Law, Irbid National University, Jordan

12. Talafheh Enad: Faculty of Law, Irbid National University, Jordan

Abstract:

Commercial legislation in Jordan protects the rights of company and all relevant stakeholders including the company shareholders. It also preserves the legal functioning of financial company auditors by regulating their practical, financial, administrative and accounting oversight of financial company auditors. Utilizing the descriptive and comparative legal approach, this study identified the responsibility and work nature of auditor and the scope of this liability for damages incurred to the company and all the relevant stakeholders, based on the Jordanian Companies Law 1997, to fill the legislative gap in Jordan. French Companies Law and Saudi Companies Law were used as comparison. Results showed that compared to other laws, the Jordanian law perceived auditor in companies as shareholders’ agent, and this has resulted in oversight violation over the actions of the Board of Directors. There need to be specific rules and laws that determine the responsibility of auditor towards third-party groups, define the obligation of auditor for his errors, and tighten auditor’s responsibility based on the standard of a prudent professional. These rules and laws should also prohibit auditors that have connection with any shareholder or partner of the company, from assuming work.

Page(s): 3756-3767

DOI: 10.57239/PJLSS-2025-23.1.00296

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Companies , Financial , Jordanian Legislator , Shareholders , Auditors responsibility

References:

[1] Ahmed ,Abdel Rahman .2018 .The legal concept of the auditor's mission in the company subject to his supervision in accordance with Saudi regulations. Revue mofakir 13, : .

[2] Almasria Nashat,Ali Nashat .2022 ."Corporate Governance and the Quality of Audit Process: An Exploratory Analysis Considering Internal Audit, Audit Committee and Board of Directors.". European Journal of Business and Management Research, 7(1) : 78-99.

[3] Fadwa Meddeb .2005 .the anonymous company and auditor, the National Association of Lawyers, the regional branch of lawyers in Sousse, the judicial (. , : 21153814.

[4] Flores Cláudio. .2011 ."New trends in auditor liability." European Business Organization Law Review (EBOR) 12. , (3) : 415-436.

[5] Garcia-Blandon Josep,Maria Josep .2019 ."Is there a gender effect on the quality of audit services?. " Journal of Business Research, 96 : 238-249.

[6] Haloush Haitham A.,Hashem Alshurafat .2021 ."Auditors' civil liability towards clients under the Jordanian law: legal and auditing perspectives. " Journal of Governance and Regulation/, 10(1) : .

[7] Ioniţă ,George-Bogdan .2021 ."Legal regime of auditors and financial auditors in the matter of companies.". In Proceedings of the International Conference on Business Excellence, 15(1) : 936-944.

[8] Nour Al-Huda Madani Khalidi,Walid Khalidi .2018 .. PhD thesis, : 10160.

[9] Lee Mary,Stone Mary .1995 ."Competence and independence: the congenial twins of auditing?. " Journal of Business Finance & Accounting, 22(8) : 1169-1177.

[10] Lele Priya P.,Mathias M.,Siems M. .2007 ."Shareholder protection: A leximetric approach. " Journal of Corporate Law Studies, 7(1) : 17-50.

[11] Awad Ismail Sawalha Malak .2022 .The shareholder's right to monitor the management of the public jointstock company” is a legal study in light of the application under the Jordanian companies law and the principles of commercial corporate governance. University of Jordan Journal for Legal Studies, 2 : .

[12] Nemeș V. .2018 ."Drept comercial. Ediția a 3-a revizuită și adăugită. ", : .

[13] Piperea Gh. .2020 ."Drept comercial român. Teoria generală, întreprinderea și insolvența.", : .

[14] .2021 .Saeed albalawee, Nasir mohammad. "Legal Regulation of the Work of the Auditor in the Public Shareholding Company (A Comparative Study. " Turkish Online Journal of Qualitative Inquiry, 12(8) : .

[15] Abdel-Sanea Salama,Al-Nahda Salama .2016 .-Ilmiyya for Publishing and Distribution, first edition. , : aeb444467-10446156.

[16] Sami .2010 .general and specific provisions: a comparative study, 5th edition. , : .

[17] . .. pl?biblionumber=173634, : .

[18] Schofield B. .1997 ."Forensic and Litigation Support Accounting: Accountants' Professional Indemnity Claims the Role of the Expert.". International Insurance Law Review, 5 : .

[19] Vidal Dominique. .1985 ."Le commissaire aux comptes dans la société anonyme: évolution du contrôle légal, aspects théoriques et pratiques." (No Title) (. , : .

Citations

Downloads

Views