* Absence of the standards under which an accountant works hinders the work of auditing
* Preference of the American and the British fellowship certificate over the one of the Arab Society for Certified Accountants (ASCA)
The accounting profession enjoys a remarkable status and importance in developing communities where it has specialized studies in universities to teach its assets and bases. International accounting professional associations have been established, these associations hold qualification membership exams and are keen to develop the level of efficiency, practice and professional conduct among its members, and are doing everything that would develop and protect the reputation of accounting profession both relating to the practice or service in the field of industry, trade or public service.
With the emergence of the idea of globalization and liberalization of trade and services, the thought to create internationally recognized auditing rules and standards to replace local ones, has started.
To shed light on the reality of the accounting profession in Jordan and its role in economic development, the Jordanian news agency met with a number of specialists at both public and private levels.
Talal Abu-Ghazaleh:
Mr. Talal Abu-Ghazaleh, President of the Arab Society for Certified Accountants (ASCA) said that accounting became a tool for the proper economic decision-making, and it is no longer specific only to the purposes of extracting results of the company's work and financial situation. He noted that the accounting profession in Jordan needs laws and regulations to evolve and to help the auditor to perform his/her role in detecting strength and weakness points in the company and to provide correct and accurate information for the decision-maker to take the appropriate decision.
To develop the accounting profession Mr. Abu-Ghazaleh called for linking it to the Ministry of Industry and Trade instead of the Accounting Bureau, which its role lies in controlling the state departments. He also stated that in order to create cooperation between sectors of the Jordanian society, the accounting profession must be connected, as one of the economic development components, to the Ministry of Industry and Trade to develop plans that are necessary for its progress in a way that encourages investment in our country and increase the representation of the private sector and of the high expertise in the auditing board.
Mr. Abu-Ghazaleh pointed to the need to force companies to adopt the international accounting standards at a time where Jordan opens its doors to foreign investments. Forcing companies to adopt international accounting standards, will make investors confident in the financial statements and will be reassured by the fact that the preparation of their companies’ financial statements are conducted under the grounds of universally recognized standards and not according to the judgment of the accountant or the desire of the administration or the auditor.
He also said that the International Federation of Stock Exchanges in collaboration with the International Accounting Standards Committee (IASC) are working on a project which prohibits the circulation of any shares of companies in the stock markets only if their statements are prepared in accordance with the international standards.
Mr. Abu-Ghazaleh announced that ASCA’s next year exams will be on the basis of the international standards of accounting education and standards relating to examinations and accounting licensing. ASCA has translated the international accounting standards and provided them to the Federation of Arab Universities with the recommendation that the universities must change the method of accounting education to conform to international accounting standards.