Resilience and adaptation: examining the impact of the defense law on accounting and auditing professions during the COVID-19 pandemic in Jordan

Abstract

Purpose

This study aims to examine the impact of Jordan’s defense law on the accounting and auditing professions during the COVID-19 pandemic.

Design/methodology/approach

Using a qualitative methodology with a philosophy of interpretivism, semi-structured interviews were conducted with seven audit partners and 14 auditors to explore the consequences of the defense law in Jordan. Thematic analysis was used to identify key themes and findings.

Findings

The study reveals significant impacts of the defense law on the accounting and auditing professions. Additional disclosures in financial statements were required, increasing the workload for accounting professionals. Auditors faced challenges related to non-compliance risks, fraud risks, management override risks in collecting sufficient evidence. Specific industries, such as restaurants, transportation and tourism, were particularly affected, posing higher audit risks.

Originality/value

This study contributes to the international debate on the impact of crisis-related laws on the audit profession. It offers insights into the challenges faced by auditors during crises and underscores the necessity of adapting auditing practices to new regulatory requirements. The study’s originality lies in its examination of the specific consequences of the defense law in Jordan, providing valuable implications for professionals worldwide and emphasizing ongoing discussions on crisis-related regulations in auditing practices. It underscores the need for adaptability, learning and innovation in addressing regulatory changes and managing audit risks in crisis situations. The findings provide valuable insights for professionals worldwide and emphasize ongoing discussions on crisis-related regulations in auditing practices.

Citation

Zaidan, H., Mowafi, O., Al-Hasan, M. and Al Natour, A. (2023), "Resilience and adaptation: examining the impact of the defense law on accounting and auditing professions during the COVID-19 pandemic in Jordan", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-07-2023-0385