The Role and Impact of Corporate Governance on Narrowing the Expectations Gap between the External Auditor and the Financial Community (A Practical Study of a Sample of External Audit Offices and Companies Invested in Iraq) (Case Study in Iraq)

Fedaa Abd Almajid Sabbar Alaraji


The study aims at identifying the impact of application of the principles of corporate governance on the Expectation Gap between the external auditors and the users of the financial statements in the environment of the external audit profession in Iraq after increasing interest in the application of corporate governance in Iraq through the analytical study of the opinions of external auditors and investors in Iraq, The study concluded that the implementation of the principles of corporate governance in Iraq provides an appropriate level of confidence and confidence to investors and users of financial statements and their reliance on financial reports prepared and audited in accordance with the principles and technicality of corporate governance. This means narrowing the expectations gap  in the external audit profession between external auditors and users. The financial statements in Iraq and the principle of disclosure and transparency are the most important principles that affect the narrowing of the expectations gap in the profession of external audit in Iraq. The study recommended the need to expand the application of the principles of corporate governance in Iraq to activate the good practices of corporate management in line with the local and international accounting and auditing standards and to work on legislation and amendment of some relevant local laws in Iraq in accordance with the principle of corporate governance.


Corporate governance ; Expactations gap ; Quality of external audit ; Financial failure of companies ; Institutional controle ;External auditors responsibility.

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