Title: IFRS compliance and audit quality: evidence from KSA

Authors: Qasim Mohammad Zureigat

Addresses: College of Business and Economics, Qassim University, Saudi Arabia

Abstract: This study aims to investigate the effect of audit quality on IFRS compliance in KSA based on a sample consisting of 176 observations in the financial sector (banking and insurance companies). A logistic regression model was used to capture the effect of both auditor size, as an indicator of audit quality, and auditor experience on IFRS compliance, which was measured using an unweighted disclosure index. The results show variance in compliance levels across companies. They also indicate a significant positive effect of both auditor size and auditor experience on the compliance level. The results provide new evidence of the importance of audit quality in a developing country, and they can be used by professionals and regulators to enhance compliance with IFRS.

Keywords: audit quality; IFRS compliance; financial disclosure; International Financial Reporting Standards; Saudi Arabia; KSA; listed companies; Big 4; financial services; banking industry; insurance industry; auditor size; auditor experience; auditing.

DOI: 10.1504/IJAAPE.2015.068869

International Journal of Accounting, Auditing and Performance Evaluation, 2015 Vol.11 No.2, pp.188 - 201

Received: 24 Sep 2013
Accepted: 08 Aug 2014

Published online: 14 Apr 2015 *

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