Search Results for external-auditors

Abstract

       This study aims to present a proposed model for examining compliance with International Accounting Standard IAS 34 related to interim financial reports, in light of the requirements of the International Standard on Review of Interim Reports (ISRE 2410). The research relies on a comparative analysis of the requirements of the two standards to identify similarities in requirements as a prelude to designing the audit and review procedures required by external auditors. Based on the above, the first practical aspect was conducted by designing an examination form to determine the level of compliance with the requirements of IAS 34 and designing audit opinions and reviewing the requirements for preparing interim reports. The second practical aspect was the design of a questionnaire containing three sections related to ISA 34 and ISAE 2410. The primary conclusions indicate that a proposed model for assessing compliance with IAS 34, grounded in international auditing standards, improves the accuracy and transparency of interim financial reports while diminishing the variance in audit and review methodologies between external auditors and economic entities. Interim financial reports are not subject to external audit and review, as is the case with annual financial reports. Rather, the review is limited to a limited scope that is not binding on the units, and an opinion is not expressed in the audit report. Attention should be paid to including all detailed information in interim reports, as is the case with annual reports. The most prominent recommendations were to subject interim financial reports to audit and review, as well as to express a neutral technical opinion on the results obtained. It is necessary to develop specialized training programs for external auditors to implement interim review procedures in accordance with ISRE 2410 using the proposed model.

Abstract

The research aims to study and analyze the cognitive foundations of analytical procedures and the efficiency of external auditors, in addition to reviewing the relevant literature on the quality of financial reporting. It focuses on the extent to which analytical procedures are applied and on verifying the external auditor’s commitment to their implementation within a selected sample of Iraqi banks (Iraqi National Bank) The study is based on the hypothesis that adopting sound analytical procedures, supported by an audit team that is scientifically and professionally qualified, positively impacts the quality of financial reporting of the audited entity. To achieve the research objectives, the financial statements of the sampled banks were analyzed using financial ratios representing liquidity, activity, leverage, and profitability.

Through a comparison between the ratios used by the external auditors and those applied by the researcher, it was found that the auditors primarily focused on liquidity indicators, applying only the current ratio, without extending the analysis to other ratios related to activity, profitability, and leverage.

The findings revealed that the effective application of analytical procedures by competent external auditors enhances the quality of financial reporting, as each element reinforces the other’s effectiveness; any weakness in one dimension directly affects the reliability of financial reports.

The researcher recommends that analytical procedures and financial ratios be applied by auditors throughout all stages of the audit process, as they provide essential support in determining the nature, timing, and extent of audit tests, while maintaining previous results for comparative and future evaluation purposes..

Abstract

This research aims to analyze the extent of companies' compliance with International Auditing Standard 265 (ISA), which requires management to report deficiencies in the internal control system. The research focuses on the overlap of this standard with the elements of the internal control system according to the COSO model. It also studies the relationship between compliance with the standard and the efficiency of the control system, with a focus on the control environment, risk assessment, control activities, information and communication, and follow-up. The research reviews the challenges facing companies in implementing this standard. The research concluded that compliance with Standard 265 enhances the effectiveness of the internal control system. which enhances confidence in financial reports and reduces the chances of corruption and operational errors, and that failure to identify objectives and analyze risks leads to major gaps in internal control systems, and that relying on risk assessment principles in the COSO framework enhances banks' ability to identify weaknesses and material risks and address them effectively. and provides recommendations to enhance its implementation by encouraging internal and external communication through establishing effective communication channels within the banking sector for the purpose of accurately transmitting information and improving the communication process with external parties with the aim of ensuring that all parties are committed to their responsibilities

Abstract

The research aims to identify the role and procedures of external auditing in developing and enhancing the work of internal control in governmental institutions. It also seeks to determine the extent to which the adherence of government units to internal control components according to COSO contributes to strengthening their effectiveness. Furthermore, it explores the role of the external auditor in examining and evaluating internal control within governmental units and the extent to which external auditing relies on it.

To achieve the research objective, questionnaire data were analyzed using statistical methods, specifically Factor Analysis, to determine the relative importance of each factor. Weighted data were then obtained based on the importance determined by factor analysis, followed by structural equation modeling (SEM) analysis, incorporating the mediator variable (internal control components according to COSO).

The research population was defined as the Federal Board of Supreme Audit employees working in the Ministry of Electricity under the Iraqi Federal Financial Supervisory Board. The research sample was limited to a governmental unit subject to the audit of the research population, specifically the headquarters of the Iraqi Ministry of Electricity, due to the availability of the necessary data and their cooperation in scientific research.

The theoretical part of the research relied on collecting data from books, articles, theses, dissertations, scientific studies, and all research related to the topic, whether in Arabic or English, as well as online resources. The practical part depended on creating a questionnaire distributed to the sample individuals.

The research reached several conclusions, the most notable being the lack of awareness among government units and their staff, especially the sample, regarding professional publications related to internal control, such as international and local auditing standards. It also highlighted the failure to keep up with guidelines issued by the Federal Financial Supervisory Board (e.g., the 2007 Internal Audit Units Guidance Manual, Audit Manual No. 4, and the 2024 Internal Control Manual). This was confirmed by practical findings, where respondents agreed on the existence of a relationship and influence between external auditing and the effectiveness of internal control. This influence could be negative if external auditors fail to develop and update audit mechanisms. Additionally, relying on COSO internal control components in external auditing helps enhance the effectiveness of internal control, as shown by the analysis results, especially with the presence of the mediator variable. However, the lack of knowledge about these components has led to weak attention to internal control elements, ultimately weakening internal control in public sector units.

Among the key recommendations of the research is the need to familiarize employees within the unit with professional publications related to internal control, particularly the 2024 Internal Control Manual issued by the Federal Financial Supervisory Board. This manual emphasizes the importance of adhering to internal control components and principles and their impact on enhancing the effectiveness of internal control. This can be achieved through seminars, workshops, and conferences conducted by specialists, in addition to those organized by the Federal Financial Supervisory Board. Furthermore, it is essential to distribute all professional publications related to internal control to employees for review and awareness of their key provisions.

Abstract

The study aims to diagnose and clarify the role of audit evidence in assessing the efficiency and effectiveness of the accounting information system for the entities subject to audit. The study was based on a main hypothesis that states the adoption of the external auditor to obtain an integrated and comprehensive set of evidence in accordance with the requirements of international auditing standards in monitoring the operation of the accounting information system for business organizations can result in a set of benefits, including facilitating the task of evaluating the effectiveness and efficiency of the system’s outputs to the extent to which the characteristics of this system comply with the requirements of the beneficiaries on an ongoing, accurate and objective basis. In order to achieve the objectives of the study, examine and test its main hypotheses, the study adopted the descriptive analytical approach by constructing and formulating a questionnaire that was distributed to the study sample consisting of a group of external auditors serving in auditing offices in the Republic of Iraq, and then analyzing the study data through adopting a number of tools and statistical methods.

The study reached a set of conclusions, the most important of which is that one of the most important challenges facing the external auditor when practicing the tasks of collecting audit evidence its dealing with auditing technology, especially with regard to collecting electronic evidence along with its traditional counterpart. In addition to the weakness in level of accounting and auditing culture for the audited entities. The study also recommended the necessity of providing adequate support by the senior management for the entities subject to audit in relation to the external auditor when exercising the tasks of collecting evidence and taking into account the element of audit fees and wages in a manner that is commensurate with the size and complexity level of the company’s activities for which the accounting information system is audited.

Abstract

The study aims to shed light on the types of risks associated with the use of information technology in the audit process that face the external auditor, and to demonstrate the impact of these risks on the quality of the external auditor’s performance through the auditor’s academic and professional qualifications, rules of professional conduct, and consistency with field work standards. The study was based on the hypothesis The main principle is that the external auditor’s identification and evaluation of the risks that he may be exposed to when using modern techniques represented by auditing technology can result in a series of positive results, which in turn enhance the quality of his performance in the auditing process. In order to achieve the objectives of the study and examine and test its sub-hypotheses, it was adopted The study adopted a descriptive analytical approach through constructing and drafting a questionnaire that was distributed to the study sample consisting of a group of external auditors working in auditing offices and companies in the Republic of Iraq, and then analyzing the study data through the use of a number of statistical means and methods.

The study reached a set of conclusions, the most important of which is that the expansion and spread of the use of information technology in many professional works has placed the auditing profession on the need to keep pace with technical developments, as there has become an urgent need for the use of technology by the external auditor in his audit work. Information has provided many opportunities and provided many competitive advantages, but its use is associated with various risks that require the external auditor to recognize and evaluate them in advance to take the necessary precautions and procedures and thus will positively affect the quality of his performance when conducting the audit. The study also recommended the need for auditing offices and companies in Iraq Which uses technology in its work with all policies and procedures that ensure that all auditors are aware of the risks of technology and the extent of its impact on the quality of the external auditor’s performance