Do Listed Companies Need an IFRS Committee Beside Audit Committee?

Abstract

The aim of the study is to identify the necessity of forming an international accounting standards committee from the board of director and to investigate its role in reinforcing corporate governance pillars and the integrity of financial reporting.A questionnaire was designed containing 18 items distributed to a sample of 121 external auditors and 121 financial managers of companies listed in Amman Stock Exchange.Response rate of usable survey instruments reached 78%.With the help of SPSS program, one Sample T-Test used to analyze the contents of the survey instrument.The results showed that listed companies face difficulties in applying both the international accounting standards and corporate governance best practices, and also revealed that huge duties placed on the audit committees limits their ability to fulfill their objectives properly and securing the soundness of financial reporting system, therefore this study recommends the formation of an International Accounting Standards Committee from the board of directors to supervise and monitor accounting practices, evaluation judgments, recognition, measurement policies and ensuring adequate disclosure and transparency in accordance with IFRS.

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