Factors affecting work strategy of auditing firms in Jordan: A field study

Abstract

This study investigates the effect of some factors on the working strategy of auditing firms in Jordan. Such factors include: multiplicity of services provided by these auditing firms, education and experience of the auditors, applying quality controls, and merger of the auditing firms or affiliation with international auditing firms. To achieve these objectives, the researchers developed a questionnaire and distributed it to a sample that represents the whole population, which consisted of 28 auditing firms that employ two or more certified accountants. The results of the study indicated that the four factors mentioned above affect significantly the auditing firms' strategy in Jordan. The study also revealed that the factors related to auditors' education and training ( Qualified Auditors )are the highest in affecting strategy, followed by factors related to mergers of local audit firms, then the factors of applying quality controls and lastly the factor that deals with providing variety of services. The study provides some recommendations such as encouraging merger of local auditing firms in Jordan, applying quality controls as required by International Auditing Standards and adopting the strategy of specialization in auditing for improving competitive position of the auditing firms, and enhancing the auditing profession in Jordan