The Impact of Weak Filtering of Observations in External Audit Reports on the Performance and Value of the Institution
Ahmed Faisal Taqi, Raheem Radhi A Alsuweef, Ahmed Neamah Abed
Abstract
The research aims to determine the theoretical and statistical relationship between the inadequacy of addressing observations in external audit reports and its impact on the performance and value of the institution. This is achieved by relying on the descriptive-analytical method to study the phenomenon and analyze the questionnaire data, which targeted a random sample of (65) accountants and auditors with practical experience in the field of accounting and auditing for institutions subject to external audit. It was analyzed using the SPSS statistical program, which led to the most important results, which revealed the following: • Observations in external audit reports are presented in an organized and easy-to-understand manner for the executive management in government institutions; however, the latter lacks the seriousness in addressing those observations mentioned in the Federal Financial Supervision Bureau reports. The lack of seriousness from the management of government institutions in addressing the observations mentioned in external audit reports leads to poor performance within these institutions, which negatively impacts their value. And one of the most important recommendations is • Executive management in government institutions should take external audit reports seriously in light of significant audit observations. • Executive administrations in government institutions should take into account the poor resolution of observations in the audit reports when evaluating the institution's performance.
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