Role of Auditor Turnover In Enhancing The Quality of Auditor's Report: An Analytical Study
Keywords:
auditor turnover, Auditor's Report, Quality of Auditor's Report, mandatory turnover, AuditingAbstract
The paper aims to demonstrate the importance of mandatory rotation in the quality of the auditor's report when expressing his technical opinion. Trading volume was measured based on annual financial reports data for a sample of Iraqi companies listed on the Iraq Stock Exchange. The years from 2011-2020, which included 4 companies in the (investment sector), through the use of a binary weight scale that allows the researcher to measure (alternation). The annual reports of each company are noted separately and are symbolized by a number (1) in the case of (rotation) the auditor and (0) in the case of (non-rotation), to know the number of times of rotation during the period and for each company. The results show that the mandatory rotation contributes to enhancing the independence of the auditor and thus is reflected in the quality of the auditor's report in expressing the technical opinion impartially and objectively. Therefore, it is necessary for investment companies to pay attention to the role of the auditor due to the importance of the auditor acquiring multiple experiences by reviewing the various activities of the companies.
References
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