Auditing the Statement of Cash Flows for Jordanian Public Listed Companies

Eman Hanini, Modar Abdullatif

Abstract


The study aimed to explore the process of auditing the statement of cash flows by auditors of Jordanian public
listed companies. In doing so, it used a structured questionnaire that surveyed the views of auditors who work for
audit firms that audit the financial statements of Jordanian public listed companies. In particular, auditors were
asked about the importance of the statement of cash flows for their audit and their opinion on the financial
statements, the extent of their auditing of detailed components of the statement of cash flows, and their use of
specific financial ratios related to the statement of cash flows in predicting the company’s continuance as a going
concern.
Findings of the study suggest that auditors of Jordanian public listed companies do generally recognize the
importance of the statement of cash flows and do generally audit many detailed items of the statement in its
operational, investment, and financial sections, and do use financial ratios that employ cash flow measures to
evaluate the company’s going concern hypothesis. However, the level of such perceived importance and use of
audit procedures was reported as being relatively limited, an issue that raises questions over the quality of such
audits and the awareness of auditors as to the importance of auditing the statement of cash flows.


Full Text: PDF DOI: 10.5539/ijbm.v8n4p123

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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