External Auditor`s and Fair Values Estimates: An Exploratory Analytical Study in Large Jordanian Audit Bureau

Ahmed H. Gomaa, Moayad R. Khanfar


This study aims to evaluating the development trends in the use of fair value estimates to prepare financial statements, showing their reflections on audit engagement performance. The study also measuring the applying level of the Fair Value Estimates Audit Requirement (FVEAR) as stated by the ISA No. 545 on financial statement audit of Jordanian economic sectors. Toward this end, a questionnaire was developed containing 33 Para.(sub.61) and distributed to a sample of (65) auditors covering large audit bureau in Jordan.
After the Analysis of dependent variables (6), test of hypotheses and study of difference trends by SPSS, results showed that the general level of the applying of FVEAR by Jordanian auditors is %87. To be more specific, the disclosures about fair value yielded the highest score %89. Other variables such as evaluating the results of audit procedures, management representations, and communication with those charged with governance, using the work of an expert, evaluating the appropriateness of fair value measurements and disclosures and audit procedures responsive to the risk of material misstatement of the entity’s fair value measurements and disclosures, have yielded scores of %88, % 88, %87, % 85 respectively.
On the other hand, the lowest score (i.e. %82) was for understanding the entity’s process for determining fair value measurements and disclosures and relevant control activities, and assessing risk.


Fair values estimates, External auditor

Full Text:



  • There are currently no refbacks.