The impact of adopting the International Auditing Standard (ISA 705) on the content of the external auditor's report

Abstract

The research aims to test the impact of international auditing standards and amendments contained in Standard (705) ISA (Modifications to the Opinion in the Report Issued by the Independent Auditor) issued by the International Auditing and Assurance Standards Board on the content of the external auditor's report. The impact of amendments to the opinion in the independent auditor's report on the content of the external auditor's report was measured by calculating the simple linear regression equation for the axis of amendments to the opinion in the independent auditor's report with the dependent variable (the content of the external auditor's report) using the statistical program SPSS using descriptive analysis of the opinions of the sample consisting of auditors and chartered accountants, according to the statistical test called the (Kolmogorov-Smirnova) test and the (Shapiro-Wilk) test. The results showed a statistically significant moral effect of applying ISA (705) (Modifications to the Opinion in the Independent Auditor's Report) on the content of the external auditor's report through the moral effect of each of: the nature of the amendment to the opinion, the types of amendment to the opinion, and the consequences of the inability to obtain sufficient appropriate audit evidence, on the content of the external auditor's report. The researcher reached a set of conclusions, including that international auditing standards help improve the performance of the external auditor and advance his work and judge the quality of his performance by providing the necessary guidelines, concepts and standards to perform his duties and implement them, in addition to the fact that the existence of international auditing standards and the pursuit of their application will give users of reports confidence in the auditor's opinion, by adding confidence in the credibility of the external auditor's work and thus adding confidence in the financial statements on which he prepares the report.