أثر التغيير الدوري للمراجع الخارجي على جودة القوائم المالية بالشركات المساهمة بالتطبيق على البنوك السعودية

الملخص EN

This study aims to identify the impact of the external auditor’s periodic change on the quality of financial statements in general, and the banks of Saudi Arabia in particular.

An extensive analysis to the previous studies published in related areas has been conducted to help achieve the targeted objectives.

In addition, some financial statements of twelve Saudi listed banks during 2008 - 2013 have been analyzed to identify the impact of external auditor’s periodic change on the quality of financial statements in these banks.

Such impact includes the quality of changes in the net operating income, comprehensive income, and net cash flows resulting from operating activities.

Results showed a significance relationship between the recognized engagement period of external auditor with the Saudi banks on the one hand, and the quality of the net operating income and the comprehensive income on the other hand.

Reliability level of this relationship is found to be below 95%.

The relationship between the engagement period between the external auditor and Saudi banks reflects approximately 8% of the change in the net operating income and the comprehensive income as well.

The remaining percentage )92%( refers to other factors not considered in this study.

The research, also, revealed a significance relationship between the engagement period of the external auditor and Saudi banks on the one hand and the quality (change increase) of the net cash flows resulting from operating activities on the other hand.

Reliability level of this relationship is found to be below 95%.

The relationship between the independent variable and the dependent variable is logarithmic and weak.

This means that the relationship between the engagement period of the external auditor with Saudi banks reflects approximately 21% of the change in the net cash flows resulting from operating activities.

The remaining percentage )79%( refers to other irrelevant factors.

It is, therefore, necessary to reconsider the relationship between the external auditor and his customer.

The long and lasting relationship is not tolerated.

It could have a negative effect on the performance of the external auditor.

Nevertheless, short relationships that could increase the auditing costs are not recommended.

Therefore, the researcher suggests that the long engagement period between the external auditor as a partner and his customer should not exceed 5 years.

It is also suggested that long engagement period between an auditing company and its customer should not exceed 7 years.