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The Relationship between Audit Adjustments and Audit Quality in Iraq

Author

Listed:
  • Mahdi Salehi

    (Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran)

  • Mohammed Ibrahim Jebur

    (Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran)

  • Saleh Orfizadeh

    (Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood 3614773955, Iran)

  • Ali Mohammed Abbas Aljahnabi

    (Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran)

Abstract

The present research aims to assess the potential impact of audit adjustments on the audit quality for the listed companies on the Iraqi Stock Exchange. In other words, this research attempts to answer whether the audit adjustments can improve the audit quality or not. To achieve the objectives, a multivariate regression model was employed to test the hypotheses. The research hypotheses were tested using a sample of 35 listed firms on the Iraqi Stock Exchange for 2014–2020 by exploiting a multiple regression model based on the panel data technique. The research findings indicate a positive and significant relationship between audit adjustments and quality. Such findings demonstrate that audit adjustment might be considered a quality factor for audit services. Since no research has addressed such a subject in Iraq, the study can provide helpful information for the equity owners, board of directors, and audit firms, contributing to developing science and knowledge in the auditing field of study.

Suggested Citation

  • Mahdi Salehi & Mohammed Ibrahim Jebur & Saleh Orfizadeh & Ali Mohammed Abbas Aljahnabi, 2022. "The Relationship between Audit Adjustments and Audit Quality in Iraq," JRFM, MDPI, vol. 15(8), pages 1-17, July.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:8:p:330-:d:872542
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    References listed on IDEAS

    as
    1. Margaret Greenwood & Ruijia Zhan, 2019. "Audit Adjustments and Public Sector Audit Quality," Abacus, Accounting Foundation, University of Sydney, vol. 55(3), pages 511-534, September.
    2. Preeti Choudhary & Kenneth Merkley & Katherine Schipper, 2022. "The Costs of Waiving Audit Adjustments," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 60(5), pages 1813-1857, December.
    3. Friska Firnanti, 2019. "Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management," GATR Journals afr173, Global Academy of Training and Research (GATR) Enterprise.
    4. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    5. ., 2021. "Impact on corporate governance and enterprise management," Chapters, in: Beyond Shareholder Value, chapter 3, pages 77-102, Edward Elgar Publishing.
    6. repec:mth:ijafr8:v:9:y:2019:i:1:p:229-244 is not listed on IDEAS
    7. DeFond, Mark & Zhang, Jieying, 2014. "A review of archival auditing research," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 275-326.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Khowanas Saeed Qader & Kemal Cek, 2023. "Analysis of the Impact of External Auditors’ Autonomy on Financial Accounting Information Quality Case Study Commercial Banks in Northern Iraq," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    2. Adeyemo Kabiru Aderemi & Akinleye Bilikis & Omole Ilesanmi Isaac, 2023. "The Effect of Audit Quality on The Financial Performance of Listed Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 107-118, December.
    3. Luan, Fushu & Zhang, Zhonghui & Chen, Yang, 2025. "Audit quality and digitalisation in shaping firm innovation strategy: Evidence from China," Technology in Society, Elsevier, vol. 81(C).

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