Analysis of the Impact of External Auditors’ Autonomy on Financial Accounting Information Quality Case Study Commercial Banks in Northern Iraq

Khowanas Saeed Qader () and Kemal Cek
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Khowanas Saeed Qader: Department of Accounting and Finance, Cyprus International University, Mersin 10, Lefkosa 99040, Turkey
Kemal Cek: Department of Accounting and Finance, Cyprus International University, Mersin 10, Lefkosa 99040, Turkey

Sustainability, 2023, vol. 15, issue 12, 1-21

Abstract: The purpose of this research is to determine how independent auditors affect the integrity of financial accounting data at commercial banks in northern Iraq. A total of 342 employees from commercial banks in Northern Iraq were surveyed using a quantitative research technique. The research uses structural equation modelling (SEM) to examine the hypothesis that the independence of external auditors improves the integrity of financial accounting information. The study’s findings indicate that financial accounting information quality in commercial banks in Northern Iraq is significantly affected by the independence of external auditors. This suggests that giving external auditors more leeway to do their jobs could boost the quality of financial accounting information at these institutions. Policymakers, auditors, and managers at commercial banks in northern Iraq can learn a lot from these results. In sum, this research adds to the existing body of work on the independence of external auditors and the accuracy of financial accounting information, with a focus on commercial banks in Northern Iraq. This research shows that increasing the independence and autonomy of external auditors in commercial banks could have positive effects on the quality of financial accounting information.

Keywords: auditing; external auditors’ autonomy; financial accounting information quality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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