HARMONIZING IRAQI LOCAL AUDIT MANUALS WITH INTERNATIONAL STANDARDS AND THEIR IMPACT ON ENHANCING THE QUALITY OF EXTERNAL AUDITING

Abstract

International auditing standards are gaining wide global acceptance to keep pace with economic transformations and bridge the gap of variation in professional practices. The research problem arises in the urgent need to develop Iraqi local audit manuals (2, 6, 7) and harmonize them with international standards (IFAC & INTOSAI) to ensure the quality of audit performance. The research adopted the descriptive analytical approach to conduct a comparative study between international standards and local evidence, leading to the formulation of a proposed framework or fundamental amendments that enhance the efficiency and reliability of financial reports in the Iraqi control environment. The most prominent conclusions were that there were a time and technical gap between the Iraqi local audit manuals (2, 6, 7) and the fundamental updates that occurred in the international auditing standards (ISAs) and INTOSAI standards, and that the stagnation in the texts of the local manuals limits the ability of the external auditor to exercise his duties in accordance with international quality standards.