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Code of ethics for professional accountants and change the external auditor: A study of the emerging markets
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Abdel Razaq Farah Freihat 
, Ismail Hamad Al-Shaar, Ayda Farhan
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
To ensure the independence of auditors and the credibility of financial statements, this study investigates if Jordanian manufacturing companies change their external auditors. Moreover, assess if that change is influenced by the International Code of Ethics for Professional Accountants (ICEPA). The study figured out the viewpoints of external auditors and financial managers of public industrial companies listed on the Amman Stock Exchange. Auditor’s changing data is gathered from the annual reports of (59) manufacturing firms from 2006 to 2015. (280) questionnaires were collected from financial managers and auditors of manufacturing firms to assess if auditors comply with ICEPA. The binomial test and the logistic regression analysis were used. The study showed that the change of the external auditor in Jordanian companies is significantly affected by the ICEPA. However, external auditors and financial managers have different views of the effects of the ICEPA on the change of the external auditor in Jordan.
Keywords: Code of Ethics, Professional Accountants, Changing The Auditor, The Industrial Companies, Jordan
Authors’ individual contribution: Conceptualization – A.F.F., I.H.A.-S., and A.F.; Methodology – A.F.F., I.H.A.-S., and A.F.; Investigation – A.F.F., I.H.A.-S., and A.F.; Writing – Review & Editing – A.F.F., I.H.A.-S., and A.F.; Project Administration – A.F.F., I.H.A.-S., and A.F.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: M41, M42, M49
Received: 06.02.2021
Accepted: 12.04.2021
Published online: 13.04.2021
How to cite this paper: Freihat, A. F., Al-Shaar, I. H., & Farhan, A. (2021). Code of ethics for professional accountants and change the external auditor: A study of the emerging markets. Corporate Ownership & Control, 18(3), 201-212. https://doi.org/10.22495/cocv18i3art16
