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Document Type |
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Article In Journal |
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Document Title |
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The Effectiveness of Major Regulatory Pillars upon which the Auditing Profession in the Kingdom of Saudi Arabia is Based: An Empirical Study فاعلية مرتكزات تنظيم مهنة مراجعة الحسابات في المملكة العربية السعودية في مواجهة المشاكل والتحديات المعاصرة : دراسة ميدانية |
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Subject |
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Accounting |
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Document Language |
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Arabic |
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Abstract |
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This research aims at evaluating major regulatory pillars upon which the auditing profession in the Kingdom of Saudi Arabia is based (including professional standards, ethical codes of professional conduct, fellowship examinations, continuous professional education programs, quality review programs, and communication channels that assure the delivery of rules and regulations to auditors and society in general) through measuring the effectiveness of such regulatory pillars in dealing and coping with the difficulties and challenges facing the Saudi auditing profession’s environment and restricting its negative effects. To achieve that, a positive methodological approach has been implemented. This approach is based on exploring, explaining, and predicting certain phenomenon through reviewing previous literature as well as understanding the current status in order to reach a number of definitions and to identify all sorts of factors related to this phenomenon. Based on ideas drawn from such a methodological approach, the research hypotheses, upon which the empirical research provided by this paper is based, have been identified. These have been examined using questionnaires through which a number of factors for each hypothesis have been used. Selecting and determining these factors were facilitated by issues taken from previous literature that dealt with auditing regulatory pillars and with the contemporary difficulties and challenges facing the Saudi auditing environment. The findings of this research suggest that a consensus does not seem to exist between auditors on the one hand and related parties on the other hand on their knowledge of difficulties and challenges facing the Saudi auditing environment. The significance of some aspects related to the factors explored in the empirical research (including the limitation of compliance with professional standards, ethics and other rules and regulations by auditors, the persistence and spread of existing “low baling” concept (i.e. low level audit fees) within the Saudi audit environment, the monopoly over professional services by a limited number of professional firms, the existence of regional professional bodies, and the affiliation to the World Trade Organization by Saudi Arabia. Moreover, there are differences in the responses of parties under research regarding other aspects related to the same factors, even though, these parties agreed on their knowledge of major regulatory pillars upon which the auditing profession in Saudi Arabia. The paper is concluded by providing some recommendations, such as participation of academics in correcting the laws of accounting and auditing, assuring the existence of fair balance between fees and effort in all audit assignments, and the consideration that should be placed by the Saudi Organization for Certified Public Accountants (SOCPA) on various required changes on its strategic plan that would enable Saudi Arabia to achieve the requirements of the World Trade Organization. The researchers also recommended some future research topics.
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ISSN |
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1319-0997 |
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Journal Name |
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Economics and Administration Journal |
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Volume |
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21 |
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Issue Number |
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1 |
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Publishing Year |
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1428 AH
2007 AD |
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Article Type |
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Article |
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Added Date |
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Sunday, October 11, 2009 |
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