THE ROLE OF INDUSTRIAL SPECIALISED EXTERNAL AUDITORS AND JOINT AUDIT STRUCTURE ON AUDIT QUALITY: MEDIATING THE ROLE OF AUDIT RISKS

Abstract

Audit quality is an important international requirement that necessitates the focused efforts of researchers and policymakers. This article investigates the influence of specialised external auditors in the industrial sector and the structure of joint audits on the quality of audits conducted in the Iraqi oil industry. The study examines the role of audit risk in relation to industrial specialised external auditors, joint audit structure, and audit quality in the Iraqi oil industry. Data was collected from external auditors in the oil industry in Iraq using survey questionnaires. The study also investigates the relationship between the constructs under study using SPSS-AMOS. The study found that the presence of industrially specialised external auditors and a joint audit structure is positively correlated with the audit quality of the oil industry in Iraq. The results revealed that audit risk plays a significant role in mediating the relationship between industrial specialised external auditors, joint audit structure, and audit quality in the Iraqi oil industry. The study assists regulators in developing regulations to promote high audit quality through the utilisation of experienced external auditors with industry expertise and the implementation of an efficient joint audit structure.