THE IMPACT OF CONTINUOUS AUDITING ON IMPROVING THE RELEVANCE AND CREDIBILITY OF ACCOUNTING INFORMATION

Abstract

The continuous rise in complexities in conducting financial transactions in the digital age has made it necessary for there to be assurance mechanisms in place that can give assurances on the level of integrity in financial reporting in real time. The purpose of the current study is to examine the role of continuous auditing on the essential qualitative aspects of accounting information, i.e., relevance and credibility, within the accounting and auditing profession within the context of Iraq. A descriptive-analytical method was employed. Data was collected through a structured questionnaire administered to a stratified random sample of 75 academics and practicing accountants and auditors from Iraqi corporations and licensed audit firms between September and December 2025. The reliability of the data collection instrument was validated by computing Cronbach’s alpha coefficient, which was found to be 0.85. Descriptive statistical results revealed an extremely high level of respondent agreement on the two dimensions. The relevance construct had a mean of 4.38 with a standard deviation of 0.690, while the credibility and reliability construct had a mean of 4.28 with a standard deviation of 0.720. The results of the simple linear regression test revealed an extremely high explanatory role of continuous auditing. The results showed that it explains 78% of the variance of the dependent variable of relevance with an R2 = 0.780; F = 160.121; p < 0.001. Similarly, it explains 73.4% of the variance of the dependent variable of credibility and reliability with an R2 = 0.734; F = 121.056; p < 0.001. The results of the current study provide empirical support to the role of continuous auditing on the decision-usefulness of accounting information by minimizing reporting delays, controlling opportunistic behaviors, and providing real-time verifications. The results of the current study have direct implications for reinforcing financial market integrity and boosting the level of investor confidence, particularly within the context of developing economic environments.