The Impact of Auditor's Turnover The Auditor Ability To Detect Material Misstatements In The Financial Statements

الملخص

The paper aims to study the effect of the auditor's turnover on his ability to detect fundamental distortions in financial statements. The trading volume was measured based on the data of the annual financial reports for a sample of Iraqi companies listed on the Iraq Stock Exchange from 2011 to 2020. The study sample included four companies in the (investment sector) through a two-weight scale that allows the researcher to measure the (business volume). The annual reports of each company are noted separately. They are symbolized by the number (1) in the case of (turnover) of the auditor and (0) in the case of (non-turnover) to know the number of turnover times during the period and for each company. The results show that the auditor's turnover helps in improving audit quality by diversifying the auditor's experience and knowledge, increasing confidence in the financial statements, increasing the ability to detect and reporting errors in internal control systems, and reducing the present value of future benefits from the auditor's relationship with the client and client. Therefore, the rotation policy should be applied in the Iraqi investment sector. In addition, the period of connection between the auditor and the company under review should be determined for a period not exceeding five years to benefit from the advantages of the turnover rate.