Factors Associated with Audit Reports in Saudi Arabia

Dr. Qasim Mohammad Zureigat
Dr. Qasim Mohammad Zureigat * §
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Factors Associated with Audit Reports in Saudi Arabia

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Abstract

Considering audit reports as the results of any audit task and their importance in communicating an auditor’s opinion about the credibility of financial statements, this study aims to investigate the effect of firm-related factors and auditor-related factors on the kinds of audit reports in Saudi Arabia, which is considered one of the biggest markets in the MENA region. Data for 153 listed companies are employed in the analysis, collected as at the end of 2013. A multiple regression model is developed taking audit reports as the dependent variable. The results indicate that the auditor’s size, firm size, and leverage significantly affect audit reports, with large auditors tending to issue modified audit reports more than smaller auditors, and small companies and leveraged companies being more likely to receive modified audit reports. Neither profitability nor the age of the company (as a listed company) affects audit reports. These results are consisted with the literature and the nature of the Saudi stock market formally established in 2003.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Qasim Mohammad Zureigat. 2015. "Factors Associated with Audit Reports in Saudi Arabia". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D5).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
audit reportauditor sizeListed Companiesmodified reportssaudi
Classification
GJMBR-D Classification JEL Code: M40
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 2, 2014
  • Published January 15, 2014
Version of record

v1.2

Issue date
February 3, 2015

Language
English
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Factors Associated with Audit Reports in Saudi Arabia

Dr. Zureigat
Dr. Zureigat College of Business and Economics, Qassim University
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 2, 2014
  • Published January 15, 2014