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

Abstract


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.


Keywords


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

Full Text:

PDF

References


-Alamgir , M. , Corporate Governance A Risk perspective , paper presented to Governance and Reform , a conference organized by the Egyption Banking institute , Gairo , 2007, 227 , pp.45 .

-Adres ,Mohamed .A. , The impact of corporate governance on the degree of disclosure in the statement and the quality of accounting information , Khartoum , PhD thesis, university of Sudan of science and technology , 2010 ,pp47 .

-Al Hadi AlRasheed , The role of corporate governance in enhancing the confidence of users of the financial statement , Master thesis , university of sudan of science and technologe ,2009,pp.12 .

-Alshabi,Ilham , The role of audit committees in activating corporate governance , Fourth scientific conference ,Ain Shams university , commerce college,2008,pp.11.

-AlSakka Ahmed & Alkhair Mdather , (2008 ) ,Contemporary problems in review ,2008,pp.330 .

-Althenebat ,Ali . A. , Structure of the expectations gab and its causes , article, Journal of studies , Jordan university of Administrative sciences , VI (11),2003,pp.11 .

-Amin ,Ahmed , Audit between theory and practice , university house publish , Egypt,2006, 55 .

-Bu Arar ,Ahmed, External audit as a mechanism for implementing corporate governance , Master thesis , university of Chlef ,2008,pp 55.

-Dahmash,Naim, corporate governance and its relationship to auditing and the accounting profession ,The fifth scientific conference ,Jordan ,2003,pp.24 .

-Ghali George , Developing the auditing profession to address contemporary and the challenges of the third millennium, university house for publishing ,Egypt,2011,pp.8.

-Habboush Mohamed .G , The extent of the commitment Phalestinian companies to rules of governance , Master thesis , University of Gaza,2007,pp.67.

-Ibrahim Alesawi , Development in a changing word, Astudy in the concp of development and its indicators , Cairo , Dar Alsharouk publishing ,2003,pp.30.

-Issa ,Samir.K, Specific factors for the quality of internal audit function in improving the quality of corporate governance , article, Journal of the faculty of commerce for scientific research ,Ascandria university , VI(1),2008,pp78 .

-Jerboa ,Youssef.M, The expectations gap between the financial community and the external auditor, Journal of the Islamic University, VI.2,2004,pp66 .

-Mohammed,Amal.I, The role of internal audit in supporting the effectiveness of corporate governance , Journal of studies and Business research faculty of commerce , Banha university, VI.2,2005,pp343.

-Massoud Siddiqui , Towards on integrated framework for financial review in Algeria, PhD thesis , Algeria university,2004,pp75 .

-Porter , B& Gowthorpe ,G, Audit expectation performance gap in the united kigdom in 1999 and comparison wihe the gap in New Zealand in 1989 and 1999, to be published by the Institute of chartered Accountants of Scotland,2003,pp46. .

-Sikk et al . , THE impossibility of the expectation Gap : some theory AND evidence, critical perspectives on accounting , vo1.9.,1998, pp.300.

- Salah Muhammad, Use of risk management and risk management tools to serve corporate governance, Conference of the Arab organization for administrative development ,2005,pp.66.

- Salman ,Mohammed,coporate governance and the treatment of financial and administrative corruption ,Alaskndria ,university ,House for publishing,2006,pp77 .

-Sami ,Sobhi , The gab between the expectations of the users of the financial statements and the nature of the auditors work , Mastr thesis , Faculty of Administration and economic , King Abdulaziz University ,2003,pp.39 .

- Tomas , W ,& Htley.E,Review between theory and practice , Riyadh, Dar Al marikh publishing,2006.pp88.

- Yasin ,Omrwa ,(2006), THE role of internal audit in activating the organization of corporate governance , Conference of the Arab organization for Administative Development , 2006,pP.188.


Refbacks

  • There are currently no refbacks.


 
  
 

 

  


About ASRJETS | Privacy PolicyTerms & Conditions | Contact Us | DisclaimerFAQs 

ASRJETS is published by (GSSRR).