The Effect of Auditing Risks on the Efficiency of the Accounting Information (A Case Study in the Iraqi Trading Banks)

Abstract

Auditing risks are considered one of the most important obstacles that auditing profession can face due to the existence of many difficulties and challenges that may impede the work of the auditor and make him unable to perform his work efficiently and effectively. The current study aims to identify the effect of auditing risks on the efficiency of accounting information.

The study found a significant correlation between the auditing risk variable and the efficiency of the accounting information variable. There was a significant correlation between the inherent risk variable and the efficiency of the accounting information variable, and the role of the accounting information in reducing the risks variable. There was also a significant correlation between the detection risk variable and the efficiency of the accounting information variable, and between the detection risk variable and the role of accounting information in reducing risks variable. Moreover, there was a significant correlation between the control risks variable and the efficiency of the accounting information variable, and between the control risks and the role of accounting information in reducing risks variable.

The study concludes with a set of recommendations including the need to work to provide appropriate coordination between the internal and external auditing operations in Iraqi banks in order to achieve the best possible risk management and control and to work to increase interest in disclosure of the nature of the risks that the bank encounters and that affect its financial and economic performance. Moreover, working on providing accurate accounting information taken from the financial reports to avoid and reduce the levels of risk that the bank may encounter, as well as using modern methods by which the auditing risk can be assessed, including the control risks, and detection risks in order to reduce the levels of risk that Iraqi banks face.