THE IMPACT OF DEVELOPING THE EXTERNAL AUDITOR'S REPORT ON THE QUALITY OF FINANCIAL REPORTS IN LIGHT OF THE TRANSITIONING TO INTERNATIONAL AUDITING STANDARDS: EVIDENCE FROM THE SAUDI BUSINESS ENVIRONMENT
Purpose: The research aims to study the impact of developing the external auditor's report on the quality of financial reports in light of the shift to international standards of auditing through an applied study on non-financial companies listed in the Saudi stock market. methodology: The research hypothesis was tested during the time period 2015-2018, that is, the period before and after the transition to international standards of auditing, by building regression models to clarify the relationships between variables and testing them statistically to provide evidence from the Saudi business environment about the positive or negative impact of the transition to international standards of auditing on the quality of financial reports Findings: the relationship between development of the external auditor's report and the Timing of the issuance of the financial report variable (as a proxy for FRQ) positive and significant, which means that there is a negative significant impact of the development of the external auditor's report in light of the shift to the international on FRQ Value: The importance of the research stems from the importance of financial reports and the extent of their contribution to providing information to investors and shareholders, which makes them more capable of making the right decision and investing their money in the correct way, which has a substantial impact on the economy of the Kingdom of Saudi Arabia in question. This research also helps meet the needs of professional and regulatory bodies such as The Saudi Organization for Chartered and Professional Accountants (SOCPA) and The Saudi Capital Market Authority of actual evidence on the implications of the transformation of international auditing standards, in particular the development of the form and content of the external auditor report.
Keyword : External auditor report – Expanded Auditor Report - financial reporting quality- international standards for auditing-Timing of the financial report issuance - Saudi Stock Exchange
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