The Extent of Jordanian External Auditor Commitment in Applying ISA ″240″ and its Effect in Reducing Fraud in Financial Statement
Audeh Ahmad Bani Ahmad

Abstract
The purpose of this study is to determine the extent of Jordanian external auditors’ commitment in the application of the ISA ″240″ and its effect in reducing fraud in financial statement. As such, the report focuses on application of ISA 240 provision in carrying out external auditing, the frequency of deployment of ISA 240 principles among the Jordanian external auditors and the number of financial fraud cases in Jordan that have been detected using ISA 240 tool for external auditing. The study has deployed cross-sectional survey to collect data among 21 sampled auditors in Jordan using a semi-structured questionnaire. The findings has indicated that 80.3% of the sampled auditors complies with ISA 240 regulation, 58.3% of the sampled auditors have faced various challenges with ISA 240provisions, 52.38% of the sampled auditors have been able to identify financial statement frauds using the ISA 240 provision, 80.3% cases of financial fraud cases identified have been reported as per ISA 240regulations and finally 70.4% of the sampled auditors have rated ISA 240 legislation as the best tool to guide auditors in identifying and reporting financial frauds .

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