We offer audit services through the preparation of annual and quarter financial statements according to the International Auditing Standards, and according to the law of Jordanian Securities Commission.
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Legal accountants for preparing budgets for all types of companies in Jordan and auditing of limited private or public contributions companies in Jordan.
The audit appears not coincidence but it was as a result of the urgent need for a system of control over the work carried out by accountants who are recording cash receipts and stand on the validity of the registered. Where this need appeared first among Governments where historical documents indicate that the Governments of ancient Egypt and Greece used the Auditors to verify public accounts. and then listens to the checker was limitations installed books and records to determine the validity and thus the word audit Auditing is derived from the Latin word “Audire” meaning listens.
And the emergence of the theory of double entry in the 15th century led to ease and simplify the spread application of accounting and auditing, which led to the development of the accountancy profession.
The first professional organization in the field of auditing was found in Venice in Italy in 1581 as Roxonate College was established and required six years of exercise along with success in your exam to become an accounting expert person.
Fiscal policy also played an important role tax and prominent in the development of the accounting and auditing profession, if a new control tool or tax inspection, and had to be the evolution of the profession of auditing for the following reasons:
1. Increase the volume of projects and activities.
2. Delegating authority to others.
3. The emergence of companies (contribution) which led to the separation of ownership from management (i.e. the general body of shareholders on the Board).
4. Some laws and legislation such as the income tax Act and the financial market and other leading projects to hire Auditors and increased demand for their services.
The audit is intended to examine the internal control systems, data, documents, accounts and books relating to the project under audit a systematic critical examination, with a view to coming up with an impartial professional opinion on the reflection and sign financial statements on the financial status of the project at the end of the period, and the results of its film profit or loss for the period.
American Accounting Association known as the audit (the audit) as a structured and systematic process of collecting and evaluating evidence objectively, on the results of economic activities and events to determine the compatibility and consistency between these results and the established criteria and notify parties concerned of the results of the review.
-The audit process include
• Examination: validation of measurement operations and integrity that are recorded, analyzed and compiled any examination of the measurement arithmetic of financial transactions for the selected project activity
• Verification: it means the ability to judge the validity of the final financial statement as an expression of the project works for a financial period, as an indication of the financial position at the end of that period and thus the examination and investigation of two are intended to enable the auditor to give his opinion as to whether the measurements of financial transactions have led to establishing a fair outcome of the work of the project and its financial position.
• Reporting: the report is intended to develop the results of the examination, investigation, substantiated in the report to whom it may concern within and outside the project, is the conclusion of the audit, where the auditor opinion neutral technical on financial statements as a whole in terms of filming for the project and financial center operations properly and fairly.
1. Ensure the accuracy and correctness of accounting data installed in the books and records of the project and report how reliable.
2. Get an impartial professional opinion about the financial statements conform to what is restricted to books and records
3. Discover the books of errors or fraud.
4. Reduce the chances of errors and fraud through sudden Checker project visits and strengthen internal control systems used.
5. Adoption of the report of the management and financial and administrative policy and decision-making in the short or long term.
6. Assuring the users of financial statements and enable them to make appropriate decisions for their investments.
7. to facilitate the task of the tax department to determine the amount of tax
8. Reporting and completing the forms of governmental bodies with the help of the checker.
Today, auditing became wide and extensive and has additional goals and purposes, most notably:
1. Monitor and follow up plans.
2. Evaluation of the results of the work of the project in relation to the objectives set.
3. Maximize production efficiency by wiping out waste in all aspects of the project activity.
There are many types of auditing vary according to the angle at which the audit process is seen through but performance is governing all types:-
First: in terms of the Scope of Audit:
A. Complete Audit: here are checker check constraints, documents and records in order to reach an impartial professional opinion about the validity of financial statements as a whole, such scrutiny is fully detailed (Detailed Audit) any Checker scan restrictions and other 100%, on the projects that scrutinizes their accounts and operations of the small few have turned this to check the full checksum (Test-Check Audit) as a result of developments in the world of business and the concomitant emergence of large industries and companies to make reasonable The checker checks all operations and all records and documents, and that the sample and the test method in the AC increased the interest of enterprises internal control systems because the amount of tests and sample size depends on the degree of firmness such systems used with a checker tests be twice those regulations and loopholes and so it is clear that the difference between the two sift lies in differing scope the audit only and cannot limit the power of the checker on types in any form has a right Report of the audit process.
B. Partial Audit: and here only the checker on some items and not others was entrusted with only cash or check inventory stores. … The x in this case could not come up with an opinion on the financial statements as a whole, but only the audit report identified him from the topics.
It is desirable that the auditor Get a written scope audit process entrusted to the neglect or omission attributed to check item was entrusted originally audited, thus protects itself by contract from any responsibilities.
Second: in term of Timing of audit:
A. Final (Balance Sheet) Audit: the auditor is asked to perform the audit after the end of the financial period for the accounts have been closed, and maligned on this type of audit
-Failing to discover the books of errors or fraud case from happening.
-Spent a long time may not lead to the submission of the report on time.
-Disturb him for work in both the Office of the auditor and the client, which correspond to the dates of closing the books on many client projects for the same Office leading to sacrifice some accuracy in performance compared to expedite the completion of the work, that work has stopped some time until the auditor gather evidence and clues.
Obviously, this type of application in small or medium-sized enterprises, often only check items of financial statements, particularly the budget fully detailed scrutiny, and this is often called the budget audit.
B. Continuous Audit: here the auditor audits documents continuously with multiple visits to the theme throughout the audit scrutinize her, and then at the end of the year the final audit, budget, and it is clear that this type fit in the auditing of large enterprises to be audited by the audit and the audit of this type has the following properties:
1. There is adequate time to the checker which can identify the business better and fuller scrutiny.
2. Rapid detection of fraud and error in a short time, rather than leaving it until the end of the year.
3. Regularly work in the Office of the auditor and the project also to a broad area for checking.
4. Reduce the chances of tampering with records of frequent visits by the auditor of the psychological impact on project staff.
5. Complete the work on time without neglecting or delaying by project staff, because of several visits of the auditor.
But despite these advantages, the continuous audit maligned:
1. the staff of the facility by changing or deleting numbers or strings in documents and records after scrutiny, whether in good faith or with intent to cheat to cover theft, depending on the checker back again to check such documents and records, the auditor here can avoid this by marking specific codes for data or account balances, verify and validate, or take a note of the account balances of auditing for the audit date.
2. A section between the period and the other when you visit Checker to check what is proved by books and records, but he can overcome it with good choice to visit the facility.
3. possible oversight auditor from completing some things left open on his last visit he can overcome this by reference to the recorded observations of this addition to auditing system which sets validated audit is done step by step.
4. Possibility of friendship and good relation between the auditor and the project staff because of the frequent visits to the project causing embarrassment to the auditor when he discovers a fraud or an error in the books of the project, or when he writes his report.
5. Possibility of turning the continued audit into a chore, so avoid these modifications in the audit program to be flexible.
Thirdly: in terms of Audit Staff:
A. Internal Audit: the Audit Commission internal or independent auditors of the company, in order to protect the funds of the enterprise, in order to achieve the objectives of the Department as the most efficient management and productivity of the project and encourage compliance with administrative policies.
B. External Audit: the main purpose of salvation to report on the fairness of the general budget for a photography company, and just filmed the final accounts of the results of the financial period in question, therefore, the neutral outsider independent of project management for this species is sometimes called the neutral or independent audit Independent Audit
We must not come to mind that a sound system of internal audit to the audit by an independent external auditor to the Board of the differences between the two types, most notably the lack of neutrality in the internal audit of the internal auditor is subject to dependency management serves its objectives, while the principle of independence of the external audit, where the auditor here agent holding the bulk of shareholders or owners.
Fourth: in terms of Degree of Compulsion:
A. Audit the mandatory Statutory (Compulsory): the Audit Act to be done, the Jordanian companies law no. (22) of 1997 that audit companies, it became mandatory, and here the law otherwise penalties on companies that fail to do so and does not provide reports with the final accounts and audited financial centers by licensed Auditors, and this type is referred to occasionally check the legal Statutory Audit, this should not be the only full scrutiny.
B. Optional Audit: required by the owners of the facility without legal obligation should be done and that is the case for individual projects and companies (solidarity, limited, joint venture ) in Jordan and may have partially or fully at the discretion of the owners of the facility, as described in the contract concluded between the client and the auditor.
The audit was initially voluntary, and it took long time until it became legally binding while in the minds of those watching over the country’s economy, the need for providing a neutral, external accounting audit and statutory corporations contracts include provisions on this area.
Fifth: in terms of the degree of coverage and the extent of (Comprehensiveness):
A. Ordinary Audit: random checking of accounts and not the particular item or a particular account checker on some accounts he sees need to check his profile.
B- Investigation is checking for a particular thing and discovered on a specific account, such as checking inventory or audit Petty cash … ….Etc.
In terms of
|Definition:||Review and evaluation of the financial records of an expert (Checker) checks the validity of restrictions and procedures in keeping these records and financial statements.||Is the science which deals with the registration, classification and summarizing and interpretation of project activities that can be expressed in monetary units.|
|Advantages and features:||Critically examine the financial statement starts and ends with the preparation of the report and opinion of the neutral technical.||The nature of the work a construction science begins with the registration of business processes and ends with the preparation of financial statements of an analytical science|
|Time zone:||Starting from the point end of input documents and metadata supporting business operations the financial statements prepared by the accounting, the output neutral expert opinion financial statements report of the auditor.||Work time starts from the first trade to the last operation in the last financial period and budget.|
|Independence and impartiality:||Is not associated with the Association for project management.||Project officer monitored by Association for project management|
|Principles and rules:||Generally accepted auditing rules in GAAS.||The principles generally accepted accountingGAAP
It is important that the auditor’s opinion on financial statements as one unit only and if it should state why.
The auditor four types are as follows:
– Clean opinion without reservations
Be clean if the following conditions are not part of it and must have a clean opinion on the following points:
1. The auditor has completed the audit in accordance with auditing standards generally accepted without any pressure or restriction of management.
2. The financial statements prepared in accordance with accepted accounting principles or generally accepted.
3. These principles are applied evenly from one period to another.
4. The financial statements meet the requirements of sufficient disclosure.
5. No breaches of the statute or law.
– Conservative view
The conservative opinion appears in the following cases:
1. If there is a departure from accepted accounting principles generally accepted and that this is not the core of the opposing view does not show this reservation in a scope of the examination.
2. If the financial statements prepared in a way that does not meet the standard of disclosure is sufficient to meet the needs of users of financial statements and the reservation mentioned in a paragraph.
3. If there are restrictions to the Auditor during the audit, both from the administration or from the circumstances and the nature of the activity in the company and this reservation in a scope of the examination.
– Dissenting opinion
The auditor shows dissent in one case is whether there is a substantial departure from the principles of accounting and the reservation mentioned in the scope of the examination clause paragraphs so that the auditor mentioned in his report that these lists were prepared in accordance with generally accepted accounting principles and a view which says checker in our opinion, the financial statements do not reflect the true financial position and result of the work of the project.
– Negative opinion
The most serious types of opinion of the Verifier is to refrain from expressing an opinion with reasons that led him to this, in the case of a limitation of Auditor audit not completed it according to the principles and generally accepted auditing standards and the restrictions had a substantial impact on the completion of the audit, such as limitations of the Administration so it is not independent in the performance of the audit and performance tests planned and therefore was not able to complete the audit in accordance with generally accepted auditing standards with Note that the constraints and pressures of checker has resulted in the inability to check some items with the relative importance or intrinsic to the financial statements.
The audit process is a thorough examination of records or accounts, or actions performed by a qualified person and coach at the special training the objective of the audit was to determine whether the expenses incurred and the amounts bound by notebooks correctly and whether the asset had been evaluated correctly and the like and may audit staff from within the company or someone else outside the company appointed or assigned specifically to carry out this task in regular business The primary objective of the audit report of whether the company keeps accounts and statements and stuck their books and records in accordance with generally accepted accounting principles and whether the accounts and financial statements represent the company’s position properly and fairly.
And it is clear that knowledge of audit principles, standards and norms accepted among a Vice-President training this profession, professional organizations and scientific associations of accountants and Auditors to be grounded during the long era, and his methods and audit methods and procedures governing the work of the auditor’s examination of the internal control systems and the contents of the books and financial records for audit purposes to judge the expression f/s as a result of the project of profit or loss and financial position at the end of the Specific period.
• Audit through random sampling to ensure that financial constraints and reflect the reality of the company fairly and reached a reasonable belief that the subject of the examination of financial statements do not contain any material shown on other things what they are, and they are free of material misstatement.
• Prepare a special file for the audit includes audit schedule and information about the company and the representation of the file for book of minutes and matches for account statements.
• Auditing the internal control systems and ensure that they prevent errors and fraud.
• Preparation of annual financial statements according to international standards of disclosure.
• Issuance of financial statements quarterly or half-yearly, or every fiscal year according to the client.
• Auditing and sealing budgets according to the laws in force.