The Extent of Adherence of Jordanian Auditors in Implementing the International Standard on Auditing ISA 700

[Abstract] This study aimed to identify the extent to which auditors incorporate the elements, characteristics and contents of formal reports in accordance with the auditor and the Audit Office's requirements. The study found that there is a commitment by the auditors to the standards of preparation of the report at the rate of 97%, and there is compliance with formal elements of the auditor's report at the rate of 89%. There is also a commitment to the contents of the report, as in the standard at the rate of 98.3%. The study made a number of recommendations, the most important being to take into account the auditor's requirements when preparing the report-without exception, including all elements and noting that the report's opinion was in the light of the information and explanations provided. In addition, reconsider laws and regulations relating to audit standards require auditors to implement the audit standard ISA 700 at a rate of 100%. [Keywords] auditing; standard audit report; ISA; Jordan Introduction Any profession has its basis of exercise, and the auditing profession, like other professions, has its basis of practice; these practices have remained the basic rules and practice as recently as the rule of custom among auditors. With the advent of globalization and trade liberalization, services began to seriously consider the creation of rules and principles of exercising auditing rules that are accepted internationally as replacements for regional auditing rules and principles. The main objective of the audit process is to show the auditors' technical opinion, neutrally and fairly, on the validity of the financial statements, which reflect the truth of the organization being audited. The report is the means by which the auditor expresses his opinion about the fairness of the financial statements and provides the related parties with the financial statements, so, for the parties involved, much depends on the auditor's report and the information it contains for decision-making in present or future. Therefore, the purpose of ISA 700 is to establish standards and provide guidance on the form and content of the auditor's report as a result of the audit performed by the Independent Auditor to the data of an enterprise (IFAC, 2008). Related Studies The study by Obiedat (2007), through the questionnaire distributed to sample of Jordanian auditors, examined the extent of adherence of Jordanian auditors in implementing the international auditing standards and found that there is a commitment in the application of ISA 700. A study by Antonio and Gomez (2003) examined the usefulness and importance of the auditor's report in the process of financing and investment decisions; the study also found that banks and financial institutions rely heavily on the auditor's report and the type of opinion shown, as well as the opinion that would affect the value of the loan given by the bank; the auditor's opinion also impacted the investment process by affecting whether or not investments were made or not in the companies concerned. Concept of Audit Report The auditor's report is a link between the auditor and the parties; therefore, the preparation of the report is one of the first duties of the auditor, who must submit the report to shareholders and other relevant parties, as required by article 193, paragraph (g) of the Companies Act No. 22 of 1997. It offers the auditor a written report directed to the public and to be read before the general shareholders (Jordanian Companies Law, 1997, No. 22). It means that the auditor's report should contain the audit's neutral opinion reached from the examination; the auditor must be follow his report to the General Assembly of shareholders with answers to questions expressed by the audience. Therefore, it is necessary for the auditor to determine the form that will work as a result of the parties concerned with the work that established the audit; usually, the result is presented in the form of a report attached to the financial statements and is a companion volume. …