Indonesian Journal of Law and Economics Review
Vol 19 No 4 (2024): November
Auditing

The Integration of Corporate Governance and Risk Management Principles Is Reflected in the Quality of the External Auditor's Performance
Integrasi Prinsip Tata Kelola Perusahaan dan Manajemen Risiko Tercermin dari Kualitas Kinerja Auditor Eksternal


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  • Saddam Catea Hashmi *
Saddam Catea Hashmi
Assistant Professor , Department of Accounting and financial control, College of Business Economics, AL- Nahrain University, Jadriya, Baghdad, Iraq, Iraq *

(*) Corresponding Author
DOI: https://doi.org/10.21070/ijler.v19i4.1276
Published November 7, 2024
Keywords
  • governance,
  • risk management,
  • audit quality
How to Cite
Hashmi , S. C. (2024). The Integration of Corporate Governance and Risk Management Principles Is Reflected in the Quality of the External Auditor’s Performance. Indonesian Journal of Law and Economics Review, 19(4), 10.21070/ijler.v19i4.1276. https://doi.org/10.21070/ijler.v19i4.1276

Copyright (c) 2024 Saddam Catea Hashmi

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This research aims to explore governance and risk management's role in enhancing transparency, accountability, and the quality of external audit performance. It examines the responsibilities of external auditing in successful risk management and fostering trust among stakeholders. The study highlights the importance of compliance with international auditing standards, particularly ISA-265, in reporting deficiencies in internal control to governance and management. Using SPSS v26 and AMOS v26 for analysis, data were gathered from 255 auditors and accountants working in governance, risk management, and auditing within major Iraqi banks. Key topics include corporate governance, audit quality, the definition and significance of governance, and risk management’s methodology. Findings reveal a strong positive relationship between integrating corporate governance, risk management principles, and audit quality. Advanced governance practices and effective risk management create an environment that strengthens auditor independence and ensures accurate, objective audits. The research underscores the vital role of internal controls in governance and risk management, reducing fraud, detecting manipulation early, and achieving audit quality. These insights guide organizations in fostering transparency, meeting goals, and bolstering confidence among investors and stakeholders.

Highlights:

 

  1. Governance and risk management enhance transparency and audit quality.
  2. External auditing supports risk management, independence, and fraud detection.
  3. Compliance with standards ensures effective audits and investor confidence.

 

Keywords: governance, risk management, audit quality

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