THE IMPACT OF COVID-19 LOCKDOWN AND AUDITORS' MENTAL HEALTH ON THE EXTERNAL AUDIT EFFECTIVENESS IN MULTINATIONAL ORGANIZATIONS IN IRAQ: MODERATING ROLE OF GOVERNMENT SUPPORT

Abstract

The Covid-19 lockdown hinders the effectiveness of external audits due to environmental concerns and a severe lockout that requires global attention. Consequently, this paper investigates the influence of the Covid-19 lockdown and auditors' mental health on the effectiveness of external auditing in a multinational firm in Iraq. In addition, the research explores the moderating influence of government support on the relationship between the Covid-19 lockout, auditors' mental health, and the effectiveness of external auditing in a multinational business in Iraq. Using survey questionnaires, the researchers gathered primary data from the respondents. PLS-SEM was also employed to evaluate the original data in this study. The results demonstrated that the Covid-19 lockdown has a negative correlation with external audit effectiveness in multinational organizations in Iraq, whereas auditors' mental health had a positive correlation. In addition, the results demonstrated that government support moderates the Covid-19 lockdown, auditors' mental health, and the effectiveness of external auditing in the international organization in Iraq. By increasing auditors' mental health and reducing the Covid-19 lockout, the study directs policymakers in formulating external audit effectiveness-related policies.