Search Results for financial-statements
Abstract
The research addresses two main topics: the International Public Sector Standard (IPSAS 24) relating to the presentation of budget information in financial statements, and the Government Financial Management Information System (GFMIS).
In relation to IPSAS 24, the research focuses on clarifying how budget information is presented in public sector financial statements. The standard aims to achieve transparency and reliability in providing financial information to governments and government institutions. The research addresses various aspects of the standard, such as defining financial terms, basic principles, and requirements that must be met in submitting the budget.
For GFMIS, the research reviews and evaluates this system that is used in managing financial information for governments. GFMIS aims to improve the efficiency and effectiveness of government financial resources management, and facilitate financial planning, monitoring and evaluation processes. The concept of GFMIS, its components and benefits are reviewed, as well as the challenges of its implementation and future preferences for its development and improvement.
Overall, the research aims to provide previous researchers with an overview of IPSAS 24 and its importance in presenting budget information in public sector financial statements, as well as reviewing GFMIS and its role in improving government financial information management. This research can contribute to raising public sector awareness of the importance of adhering to international accounting standards in the public sector and using advanced financial information management systems to enhance transparency and effectiveness in managing the financial resources of governments.
The main reason for linking these two variables is to enhance transparency, accountability, and financial control in the public sector and ensure that government financial information complies with international accounting standards in the public sector. Therefore, reviewing these two variables and analyzing their role will provide an important theoretical and applied framework for understanding the relationship between them to rationalize the budget. The most important conclusions reached for the review research are that the main goal of applying the (IPSAS) standards is to achieve compatibility in accounting policies at the global level by providing guidance and directives to develop a comprehensive theoretical framework for government accounting. Evaluating government performance is achieved through commitment to applying the (24 IPSAS) standard., which allows the preparation of a variety of financial statements detailing the approved budget and actual expenditures, the final budget (adjusted allocation), and achieving the qualitative characteristics of accounting information. The government unit did not disclose in the financial statements the extent of compliance with legislative and regulatory laws and other regulations imposed by external parties. (The State) As for the recommendations, the researchers suggest that government institutions should commit to implementing the IPSAS 24 standard completely and accurately to ensure compliance with international accounting standards. Government institutions should analyze their actual needs and conduct a feasibility study before making any transfers in the original budget, in order to ensure a strong scientific basis and improve the institution’s performance in adhering to budget directives. Government institutions should fully and effectively implement GFMIS in all government units to enhance transparency and financial control. The GFMIS should also be configured in a way that meets the needs of the government unit in a way that enables it to record and track financial transactions and prepare financial reports in an accurate and timely manner.
Abstract
One of the most important issues that an economic unit can face is changing accounting policies in light of the diversity of accounting options and alternatives, The aim of the study is to provide an introductory introduction to accounting policies and the impact of changes in accounting policies in accordance with the International Accounting Standard (IAS-2), Changing accounting policy is one of the most important issues that an economic unit can face, The important factors in improving the quality of accounting information in the financial statements through analyzing the relationship between the application of these policies and their accuracy and reliability, The research is based on an analytical study of the financial statements issued by the General Company for Textile and Leather Industries, The research reached a set of conclusions, the most important of which is that since the financial statements prepared by the company, whether based on manual or electronic programs, are not based on accurate information generated through the integrated system, their output does not truly indicate the efficiency and benefits of the company’s operations as a result of the company’s possession of a database, Unified and updated for all data related to the company’s branches, and in particular, with regard to the technical and statistical aspects. As a result of the use of old systems, it has become difficult to quickly and accurately obtain the necessary information as a result of the division and dispersion among the company’s departments, which has made it difficult to review the resulting financial statements, As for the recommendations, the most important of them is the need for all economic units to pay attention to the inventory component because it increases the ability of the economic unit to remain in the market and obtain many revenues for the economic unit
Abstract
As a result of the great developments witnessed by the business environment in recent years, this has led to the necessity of shifting all transactions in accounting systems from the manual system to the electronic system, as these systems are characterized by providing accurate results in a short time compared to the manual system. Therefore, this research aims to demonstrate the effect of applying Information technology governance mechanisms according to the COBIT framework in enhancing investors’ confidence in the financial statements, and testing whether these mechanisms (planning and organization, support and delivery, ownership and implementation, follow-up and evaluation) have a role in enhancing investors’ confidence in the financial statements. The research dealt with private banks operating in the Iraqi environment as a community to conduct the practical test, while the sample included individuals working in these banks. To obtain data, the researchers prepared a questionnaire form, where (125) questionnaires were distributed, from which (118) were recovered, of which (110) were valid for analysis. While (8) were excluded because they were not valid, the researchers adopted the statistical program (SPSS) to reach the results. The research reached several conclusions, the most important of which is that information technology governance according to the (COBIT) framework contributes fundamentally to the preparation of financial reports that are characterized by reliability and appropriateness because one of the governance standards is Highlighting the accuracy and objectivity of financial reports, in addition to adherence to rules and legislation, and this is reflected positively in enhancing investors’ confidence in the financial statements provided by the banks in the research sample. One of the most important recommendations presented by the research is the necessity of bank management adopting the COBIT framework as a means of information technology governance and control, as well as the necessity of qualifying human resources in banks to use modern and advanced information systems in order to achieve the maximum benefits desired from this technology in obtaining appropriate outputs that reflect positively. On the quality of financial reports provided by the banks in the research sample.
Abstract
The research aims to explain the measurement and accounting disclosure of lease contracts in accordance with the IFRS 16 standard and its impact on the informational content of the financial statements. To achieve the research objective, the researcher applied the IFRS 16 standard in Gulf Bank because it did not apply the IFRS 16 standard during the period of application of the standard in 2019, and the researcher prepared The financial statements were prepared in accordance with the requirements of the standard before and after application, and in a retrospective manner, according to what the standard allowed, with other variables held constant. The researcher provided a detailed analysis of the impact of applying IFRS 16 on the informational content of the financial statements by comparing the results before and after application, as well as the impact of that application on Financial ratios.
The researcher reached a set of conclusions, the most important of which are the following:
- The application of the IFRS 16 standard leads to the recognition of the right to use the asset among non-current assets, which leads to an increase in assets with a decrease in prepaid expenses, as a result of the amendments in order to apply the standard represented by reversing the prepaid expenses before application. In addition, recognizing lease obligations as non-current liabilities leads to an increase in total liabilities.
The application of IFRS 16 affects the informational content of the statement of changes in equity, especially when applied using the modified retrospective method, as a decrease in retained earnings resulting from an increase in the volume of expenses due to an increase in debit interest expenses and depreciation expenses leads, therefore, to a decrease in retained earnings.
The research concluded with a number of recommendations, the most important of which are:
- The need for lease contracts to be clearer by stating the important paragraphs that have an impact on the process of accounting treatments related to the application of IFRS 16, which are (duration, payments, purchase option, the extent of the lessee’s control over the asset subject to the lease, and so on).
- The necessity of qualifying staff working in accounting departments in the banking sector, given that it is obligated to apply international standards and other sectors through training on conducting accounting treatments for lease contracts in accordance with the IFRS16 standard, as treatments that are radically different from what used to be the treatment of lease contracts according to local accounting systems.
Abstract
It aims to analyze, study and discuss the shortcomings of the accounting system, and to achieve this, the descriptive analytical approach was adopted to study the accounting system and determine its main dialogue and its consistency with the requirements of the International Accounting Standard in the Public Sector (IPSAS24) in order to increase the effectiveness of the government accounting system applied in economic units through the use of The relevant international accounting standards, and the research reached a number of conclusions, including those that the government accounting system relies on in recognizing financial transactions and events on the cash basis. Thus, the elements of the financial statements consist of cash receipts, cash payments and cash balances. Because of this basis, the results of the years’ business overlap and may encourage This is on waste, as government units spend their allocations at the end of the fiscal year randomly so that they are not returned to the treasury،The research has several recommendations, including the need to apply the (IPSAS24) standard in government units, through which budget information is presented in the financial statements in order to achieve the qualitative characteristics of the financial statements, in addition to the statement of deviations and their causes and finding the necessary treatments for proper planning of the general budget.
Abstract
The study aims to figure out the extent to which the commitment to the application of the International Financial Reporting Standards (IFRS) affects the results of the evaluation of banking performance, the study based on a key premise that the commitment of commercial banks to the application of international financial reporting standards positively affects the results of the evaluation of banking performance through the preparation of financial statements that are transparent, appropriate and comparable with other banks in all countries of the world, For the purpose of testing the hypothesis of the research and achieving its objectives, the deductive approach was used in the presentation, study and analysis of research variables in the theoretical aspect, the descriptive quantitative analytical approach and the comparative method were adopted in the practical aspect.
The study reached a set of conclusions, the most important of which is that the results of the ratios and financial indicators based on the amounts extracted from the financial statements prepared in accordance with the International Financial Reporting Standards reflected positively on the evaluation of the performance of banks and led to improving the results of the performance evaluation of the bank and the process of comparison with the ratios of banks in other countries.
The study also recommended the need to intensify efforts among the relevant authorities concerned with the process of applying international financial reporting standards in banks to increase focus and shed light on finding a unified mechanism for the application of standards and follow up on their proper application.
Abstract
The emergence of integrated reporting on global warming represents an important evolutionary stage in the auditing profession, as the auditor has moved from his traditional role of examining or auditing information or pre-prepared lists with a specific financial formula to granting a certificate of confirmation in the preparation of this information or financial and even non-financial statements. This certificate (report) is distinguished by some specificity from the conventional audit report, as assurance services fall between the level of absolute assurance and the lack of assurance, and it contains a wide range of services that do not differ from the two types of reasonable assurance and limited assurance. Specialized professional organizations, including the AICPA, have issued a group Among the standards for these services in order to rationalize their practical application, and I found many obstacles that could face the process of preparing integrated reporting on global warming in the local environment. The researcher adopted the descriptive analytical approach in the theoretical framework, as well as collecting data about the work environment and then analyzing it in the applied framework. This is done by taking advantage of the SPSS program for statistics, as well as the analytical method using it on a sample of data issued by oil refineries. The sample was estimated at the refineries of Shuaiba and Doura. The researcher reached results, the most notable of which is that there are no appropriate controls for preparing integrated reporting, as there is a difference in views about the suitability of the IR framework. As a criterion for assurance, and in particular, current assurance standards, most notably the International Standard for Assurance ISAE 3410, The research community consists of the Daura and Shuaiba refineries in Iraq. The research sample comprises 140 employees working at the Daura and Shuaiba refineries. The researcher used both the survey questionnaire (paper and electronic) and the model reports as tools. In this context, the questionnaire form was distributed to the research sample, require appropriate controls to evaluate the subject matter of an assurance engagement and the practitioner provides reasonable or limited assurance regarding the extent to which the subject matter is compatible with a specific basis, and the researcher concluded that: The high cost of preparing the integrated report compared to its benefits. The cost is also considered a major obstacle to making the entire integrated report the subject of a confirmation engagement (IIRC 2015). Confirming the entire integrated report requires the participation of multiple experts, which will make the engagement very expensive.
There is a difference in the level of credibility and reliability provided by integrated reporting compared to auditing, as integrated reporting does not provide the same level of credibility and trust provided by auditing financial statements. This is due to various reasons, including that integrated reporting is less quantitative and more qualitative in nature. The new form of assurance may fail to have the same confidence as an audit of financial statements. As a result, before embarking on making radical changes in current assurance models, sufficient time must be given. To refine its integrated reports and deal with stakeholders to determine the extent of the actual need for external confirmation, and the diversity of the nature of integrated reporting mechanisms, as the integrated nature of reporting processes and the many types of information reported require innovative forms to enhance credibility that can accommodate the link between the various components of integrated reporting. The researcher presented a main proposal to overcome the obstacles in integrated reporting of global warming, as she recommended that concerned parties adopt strategies such as strengthening cooperation and partnerships with other parties, providing training and continuous development for employees, and improving internal systems and processes to facilitate the reporting process.
Abstract
This study aimed to shed light on compliance auditing and the risks associated with non-compliance, while demonstrating the impact of compliance auditing on the quality of accounting information contained in the financial statements, applied to a sample of Iraqi banks listed on the Iraq Stock Exchange. The study also addressed the concept of compliance auditing as one of the branches of modern auditing that focuses on verifying institutions' compliance with laws, standards, and regulations, and its role in enhancing transparency, credibility, and improving the quality of accounting information. This study was based on the hypothesis that fulfilling compliance auditing requirements in the correct and proper manner by audit committees can result in a set of distinct benefits, including expressing a neutral professional opinion on ensuring the level of quality of accounting information for entities subject to auditing that meets the requirements of a wide range of investors. The study problem was embodied through a set of questions, including (Do economic units operating in the local environment seek to adopt compliance auditing practices for their financial statements and statements? Do economic units operating in the local environment realize the role that compliance auditing practices play in improving the image of the auditing profession for a wide range of investors? Does adherence to compliance auditing practices affect ensuring a certain level of quality of accounting information for entities subject to auditing, especially in an environment where the importance of transparency and financial accountability increases? In order to achieve the objectives of the study and examine and test its hypothesis, the study adopted the descriptive analytical approach. By constructing and formulating a questionnaire form that was distributed to the study sample consisting of a group of auditors, compliance monitors and financial accountants working in the banking sector, 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 there is an important role for compliance auditing in enhancing the quality of accounting information, and there is a statistically significant moral effect of compliance auditing on the quality of accounting information in its dimensions.
The study also recommended the need for continuous assessment of the extent of banks' compliance with laws and standards, and the application of effective internal control systems that support compliance auditing tasks and ensure early detection of any violations, and the development of proactive plans to avoid financial and legal risks associated with non-compliance.
Abstract
This research was conducted in one of the general directorates of the Iraqi Ministry of Electricity, which is the General Directorate of Rusafa Electricity Distribution, for three years (2015, 2016, and 2017). The research focused on the problem of lack of interest in the accounting disclosure of social responsibility in the financial statements in the aforementioned directorate.
The aim of the research is to demonstrate the role of accounting disclosure on social activities carried out by economic units in the financial financial statements, in addition to explaining the role of accounting disclosure on social activities in evaluating the performance of economic units,
The research, through measuring social performance indicators that include financial performance and non-financial (social) performance, reached conclusions, the most important of which is the lack of accounting disclosure about the costs and expenditures of social responsibility despite the fact that the General Directorate for Distribution of Al-Rasafa Electricity bears the expenses of its social performance.
The researcher recommended the necessity of enacting laws and instructions that oblige economic units to pay attention to social performance and allocating the necessary sums in the state’s general budget and disclosing them in the financial statements in order to achieve the goal of social responsibility, which is to achieve the gains that can be achieved. These units are in their nature units aimed at achieving profits.
Abstract
The quality of earning is one of the most important elements used in evaluating the real financial reality of the company, which is reflected in its financial statements and future profits, as the current study included an analysis of the relationship between the quality of earning and the growth of companies for four companies registered in the Saudi stock market and for the period (2009-2018). Both accounting conservatism and the criterion of closeness to cash models were relied upon to measure the quality of these companies' earnings. While both the sustainable growth and the internal growth models were used in measuring the growth of the research sample companies. The statistical analysis represented by finding the correlation coefficient was used for the purpose of examining the relationship between the growth factors and the quality of earning used in the current study. The results showed a strong relationship between the criterion of closeness to cash model as a measure of the quality of earning and both the coefficients of sustainable growth and internal growth. The results also presented the absence of a clear relationship between the accounting conservatism coefficient and the measured growth coefficients in the current study of the research sample. The current study recommends the importance of the obligation to disclose profits in line with accounting principles and sorting out companies that follow the method of profit management and manipulation of financial statements. The study also recommends conducting more research in the field of measuring the quality of earning and its relationship to the growth of companies
Abstract
The statement of cash flows carries great importance for the users of the financial statements and facilitates the process of understanding and analyzing them because it provides financial information that is free from misleading and is modern as one of the main requirements of the establishments and provides useful information about the establishment’s operational, investment and financing activities. It exposes commercial banks to financial crises and risks. Cash, cash liquidity risks, and it has to draw the responsibilities of the monetary authority and establish an effective central unit through a strategic system and rely on ratios and indicators of cash liquidity because the low level of cash liquidity can expose banks to a financial crisis and financial risks that make them lose the element of safety, profitability and cash liquidity even if they achieve earnings And commercial banks must maintain cash liquidity by preserving cash assets and assets, and the research also found the results of the other bank with very high ratios that outweigh other ratios, such as the cash balance ratio and legal reserve, and the need to pay attention to the surplus and shortage of liquidity that you may be exposed to. Commercial banks during the exercise of their business, and the research also arrived, and the bank has the ability to provide various services and pay the obligations due with its liabilities, as it was found that the higher the rate of employment and loans compared to other banks, it turns out that the bank is able to offer new loans and grant advances and other facilities. Financial statements, including the balance sheet and the statement of cash flows, for the purpose of developing and drawing up plans for the future In order for the bank not to resort to borrowing on commercial banks, a sound policy drawing to avoid exposing the bank to banking and credit risks and cash liquidity risks and formulating an effective and sound strategy for the purpose of managing the securities and loan portfolio.
Abstract
The research seeks to achieve a set of objectives, the most important of which is measuring the impact of using artificial intelligence techniques in improving the disclosure process in financial statements and its reflection in sustainable development. In consistency with the importance of the research and through its problem, the researchers sought to test the research hypotheses. To achieve this, a questionnaire was designed using (Google Form) and distributed on line to the elements of the research sample that were selected using the intentional sample consisting of employees of the departments of (financial affairs, auditing and internal control). (50) answers were obtained. Through the Statistical Package for Social Sciences (SPSS) application, the results of the questionnaire were analyzed. According to the applied framework of the research, a set of findings were reached, the most important of which were: Robotic process automation technology supports the accounting disclosure process in the financial statements prepared by the Presidency of the University of Basrah, which achieves sustainable development elements. The researchers presented a set of recommendations, the most prominent of which is that the Presidency of the University of Basra issue rules and instructions under which it is committed to converting to Use of artificial intelligence techniques.
Abstract
Accounting information is a vital element and an important basis in evaluating the performance of companies and an important tool in formulating their policies and making future decisions, especially with regard to investment decisions in securities, especially if this information is prepared in accordance with local or international principles and standards, which gives it quality and effectiveness in its use. The problem of the research lies in the accounting information is still unclear in the financial reports, which leads to difficulty for investors in making their investment decisions regarding buying and selling shares in the Iraqi Stock Exchange. The research aims to study the relationship and impact between the quality of accounting information and the investment decision-making process, and to highlight the importance of the accounting information contained in the reports. The financial statements of companies registered in the Iraqi stock market are for investors to help them make their investment decisions. In his study, the researcher used the questionnaire form method in collecting data. Among the most important results are: Individual Iraqi investors find that the accounting information contained in the financial reports is clear, understandable, and sufficient for the purpose of making their investment decisions. Iraqi individual investors need accounting information when making their decisions about buying and selling shares on the Iraqi Stock Exchange, and reading financial reports greatly affects their investment decisions. The most important recommendations: Work to increase individual investors’ awareness of the importance of the Board of Directors’ letter when making their investment decisions.
Abstract
Stand out the present research study aims at investigating the effect of applying international accounting standards in the public sector for the purpose of arriving at measurement and accounting disclosure of the employees' benefits granting to economic units in the government sector that apply the government accounting system, and to explicate the level of benefit in improving the outputs of the accounting system and its ability to support indicators of transparency and disclosure. In view of the vast development in financial reporting, preparing reports and financial statements with a high level of transparency and disclosure as well as the importance of working individuals being one of the important and essential factors to ensure the proper functioning of work, the continuity of productivity and the efficiency of the economic unit, the government accounting system currently adopted in some public sector directorates is considered insufficient to the requirements of internationally accepted accounting standards in general The importance of the present study has emerged in finding that it is possible to apply IAS 19 employee benefits by adapting the current government accounting system in the Iraqi economic units to the requirements of the standard and getting to know the effect of the application on the information content and outputs of the government accounting system. The General Directorate of Education / Wasit has been chosen a sample for the study in question, The current study has arrived at a number of conclusions as follows:
- The classification of benefits granted to employees and workers according to the government accounting system differs from the classification stated in IAS 19 Employee benefits.
- The quality of financial reports and statements is an important means of disclosure and communication of financial and non-financial information.
. The government accounting system does not provide adequate accounting measurement and disclosure about employee benefits. 3
In view of the findings reached at, the current study recommends the following:
1- Giving due importance to what was stated in the International Accounting Standard regarding the classification of the benefits granted and the adaptation of the government accounting system to those classifications.
2- Enhancing the awareness of management and employees in the economic unit of the importance of preparing financial reports and statements.
3- Working on adapting the government accounting system to keep pace with the requirements of international accounting standards by adding new sub-accounts to the accounting guide and creating a plan for new sub-accounts to the accounting guide and creating a plan for employee benefits.
Abstract
This research aims to explore the importance of financial analysis and its contribution to enhancing environmental performance evaluation by utilizing financial ratios in financial analysis and addressing environmental issues to improve and maintain the environment and performance of government units. The research problem centres on the negative impact of neglecting financial analysis of financial statements and the financial information they contain regarding environmental performance on making appropriate decisions in performance evaluation. Therefore, the researchers sought to prove the hypothesis that using financial ratios in financial analysis and comparing financial information with non-financial information enhances environmental performance evaluation procedures. The study examined the environmental reality of the Medical City Directorate under the Ministry of Health, which is considered a unit affecting the environment. It involved an analytical review of the issued reports and financial analysis of the budget execution statement. The research concluded that the government unit in question showed weak environmental performance due to insufficient attention to pollution control, affecting most environmental aspects, and failure to apply environmental laws and regulations. Key recommendations include the need to comply with environmental laws and regulations and the necessity of establishing an environmental auditing plan or program to cover all environmental activities of the directorate.
Abstract
This paper aims to study and analyze the audit expectations gap that arises due to the difference between the potential expectations of the auditing profession and the actual performance of that profession. The study adopted a main hypothesis that state the adopting of comprehensive auditing strategy for practicing the auditing profession through adhering to the international planning standard for auditing and understanding the nature of the economic entity that subject Auditing before starting to perform the audit duty can contribute to improving the outcomes of the audit work and reducing, managing the audit gap effectively in a way that achieves the primary audit goal of the truth and fairness of the financial statements subject to audit and enhancing confidence in the outcomes of the audit work. The study provides efforts to improve compliance with international auditing standards, including the International Auditing Planning Standard. To achieve the research objectives and prove the validity of the study hypothesis, Federal Board of Supreme Audit was chosen as a research community and a group of 5 departments affiliated with the Office as a sample for the research. The research indicated that there are differences between audit expectations based on international auditing standards and the actual application of these standards in a group of departments affiliated with the Federal Board of Supreme Audit. The results showed that these gaps may be due to the lack of sufficient understanding of the standards, or the ability to apply them effectively by sample.
The study concluded with a set of recommendations, the most important of which is that the research sample needs to address potential gaps in the application of auditing standards by enhancing educational processes and training programs and providing the necessary guidance to employees. Federal Board of Supreme Audit also needs to ensure that current policies and procedures are compatible with international auditing standards, as well as Monitoring and oversight efforts must be increased within the sample to ensure continued compliance with these standards. The study also recommended the necessity of updating policies and procedures based on international standards and implementing periodic audits to evaluate compliance with the standards.
Abstract
The research aims to know the impact of the application of IFRS 16 on the accounting measurement of rent and to know the difference between the method followed by the bank in measuring rents and the method followed by the standard in measurement, and also to know the difference between the bank’s classification of rents between operational and financing and the classification of the standard It and the consequences of this classification in terms of treatment by the bank and in the standard, by analyzing the lease contracts of the Trade Bank of Iraq and classifying those contracts into operational and financing and knowing the way in which the bank measures its lease contracts and then classifying the lease contracts according to The standard and the application of the measurement method used in the standard, and is there a difference in measurement or not. One of the most important conclusions reached by the researchers is the effect of applying IFRS 16 on the measurement of lease contracts in the bank. The most important recommendation reached by the researchers is to force Iraqi banks to apply IFRS 16 to lease contracts.
Abstract
Planning the audit process is one of the basic standards and one of the audit requirements that the external auditor must abide by in order to complete the audit profession and reach the expression of professional opinion and achieve audit quality. The examination of internal control for the entity subject to audit is the first steps taken by the external auditor in order to identify weaknesses and defects in Internal control, which affects the determination of the size, adequacy and suitability of the evidence by using the statistical sampling method and depending on his personal experience. In order to continue carrying out its normal business during the coming period, the external auditor must obtain and evaluate sufficient and appropriate evidence to reach the appropriate conviction, in addition to presenting a set of recommendations, the most important of which is the need to be completely accurate in the external auditor’s report, taking into account the audit risks that lead to expressing an opinion Inappropriate in the financial statements.
Abstract
The research aims to study and analyze the risks associated with the adoption of accounting information systems, particularly human, technological, environmental, and legal risks. It also addresses the literature related to the reliability of the external auditor’s report by highlighting the nature of these risks and explaining the extent to which they affect the quality and credibility of audit reports issued by local audit firms.
The research is based on the hypothesis that identifying the risks of adopting and operating accounting information systems by regulatory bodies, and relying on auditors who possess the professional capability to disclose such risks, will positively reflect on the reliability of the final audit report for stakeholders who rely on accounting information. To achieve the objectives of the study, a conceptual framework was developed that covers the accounting information system, its internal structure, and the risks associated with its adoption. In addition, the framework analyzes the dependent variable represented by the reliability of the external auditor’s report and the characteristics that this report must include. The study also clarifies the role that risk identification can play, especially risks related to human factors involving system designers and operators, and technological risks related to the information infrastructure of business organizations.The researcher concluded that the level of disclosure regarding the risks of adopting accounting information systems in audit reports is still limited and incomplete. A significant portion of audit outputs continues to focus on traditional financial tests, without expanding into the evaluation of risks associated with modern systems. It was also found that the lack of systematic identification of these risks directly affects the reliability of the audit report and reduces the ability of users of financial statements to rely on it.
The researcher recommends that audit reports should include an annex or a dedicated section addressing risks related to accounting information systems, and that an evaluation methodology should be adopted encompassing human, technological, environmental, and legal risks, in addition to determining the impact of these risks on the fairness and credibility of financial data. The study further recommends enhancing the training of regulatory staff on mechanisms for evaluating risks associated with modern systems and integrating the results of such evaluations into the contents of the external auditor’s report, in a manner that strengthens its reliability and transparency for all stakeholders.
Abstract
This study aims to demonstrate liquidity risk and its impact on banking security using the audited annual financial statements of Iraqi commercial banks for the period between 2016-2020AD for five of the Iraqi commercial banks. To test the study hypotheses, the percentages that represent the indicators of liquidity and banking security were extracted, and using the simple regression analysis method, the correlation coefficient, the coefficient of determination and the T-test as tools for analysis through the statistical program Mini tab 18, the results showed a statistically significant relationship between the dependent and independent variable represented by measures Bank liquidity and banking security in the Iraqi commercial banks, the subject of the study, and some conclusions and recommendations were reached for the purpose of overcoming the risks of bank liquidity.
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
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.