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Document Type |
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Article In Journal |
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Document Title |
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The Trend of Audit Firms in the Kingdom of Saudi Arabia Towards Expanding the Extent of their Professional Services: an Empirical Analysis Based on Agency Theory Implications اتجاه مكاتب المراجعة في المملكة العربية السعودية نحو توسيع نطاق خدماتها المهنية : تحليل ميداني مستند إلى مقتضيات نظرية الوكالة |
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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 exploring the incentives towards the trend of expanding the extent of professional services provided by Audit firms in the Kingdom of Saudi Arabia, to include a wide range of financial, administrative, economic and technical consultancy services together with the traditional accounting and audit services; based on the supply and demand indications in Saudi market as a basis to interpret such a trend. Also, this research discusses the effect of providing such services to an audit client on the auditor independence. To achieve the objectives of this research, a positive methodological approach is employed through reviewing previous studies taking into consideration the nature and circumstances of the profession’s context in the Kingdom of Saudi Arabia in order to determine a number of dependent and independent variables related to such a phenomena. Three hypotheses were determined and examined by using questionnaire which included a number of parameters and measures that had been employed to deal with each of the research hypotheses. The researchers has based the conduct of the research on dividing the sample into two main parts, the first reflects the supply side, which was represented by certified public accountants, and the second reflects the demand part, which was represented by parties benefiting from services provided by Audit firms. The results of the empirical study indicate that agreement seems to exist between the two sides of the research sample regarding a number of factors relating to the demand and supply of non-audit services provided by Audit firms, and a number of reasons for the demand on such services, in spite of having some differences on the degree of significance. The results also indicates that the provision of non-audit services to audit clients could have a minor or limited impact on the independence of the auditor. In the conclusion of the research, the researchers stress the necessity of issuing a package of regulations and standards by the Saudi Organization of Certified Public Accountants related to the provision of non-audit professional services rather than concentrating only on the traditional audit service in a way more accurate and suitable to the audit profession’s environment in Saudi Arabia in order to regulate the practices of such services and assure the auditor independence in both substance and appearance. The researchers also stress the necessity of enhancing social awareness of the role, scope, nature of work and responsibilities of audit firms, as well as giving more support to research related to non-audit services and their related professional standards and regulations, together with research related to the problems and challenges that faces audit firms by way of attempting to find-out and suggest proper solutions through implementing contemporary research methodologies so as to reach more effective results. |
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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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2 |
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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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Researchers
| فوزية حامد الجفري | F. H. Al-Jefri | Researcher | | |
| حسام عبدالمحسن العنقري | H. A. Al-Angari | Researcher | | |
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