Publication Date



Superior corporate governance forms the bedrock of a prosperous economy. An integral component of outstanding corporate governance is the role of transparent, accurate and freely available information with respect to a company’s books and records. Numerous stakeholders including current and potential investors, business partners, employees, regulators and the public, rely on the integrity of the financial reporting. The law on external auditors in Jordan has undergone significant improvement, yet substantial gaps exist between current law and best practices. The Article focuses on the role of the auditor in ensuring superior corporate governance. The goal of this Article is to assess the legal regime of the external auditors as provided in the Jordanian Company Legislation of 1997 and its amendments, as shareholder jurisdiction, with the UK Companies Act of 2006 and, at the same time, to provide suggestions for improvement in the current legal regime. Then, the Article presents the general perspective of the duties and obligations of external auditors in the context of corporate governance noting various shortcomings and inconsistencies between rights and duties of auditors. The Article sheds light on some of the major global financial scandals. Finally, the Article analyzes in detail the specific provisions related to external auditors in Jordan and UK laws.

First Page