The Importance of Applying the Strategic Audit Method and its Impact on Improving the Quality of Financial Reports

Abstract

The research aims to identify the importance of applying the strategic auditing method in industrial companies in the Kurdistan Region of Iraq to improve the quality of financial reports. The strategic auditing method was adopted as an independent variable through the characteristics of strategic auditing, which include (comprehensiveness, objectivity, independence, periodicity). The quality of financial reports is a dependent variable. Since the strategy audit is considered a system for identifying the extent of the company's strategies, that is, the extent of its success in achieving its goals and objectives. This requires developing a strategic plan and striving to implement it in order to achieve the company's mission and objectives. And its role in achieving quality financial reports in industrial companies, given that the issue of the quality of the auditor’s professional performance represents the focus of many studies, regulations and legislation issued by professional organizations, with the aim of working to achieve and maintain this quality. To achieve this, the researchers used primary data, and a questionnaire was distributed to (80) people in industrial companies in the Kurdistan Region. After sorting it, (70) questionnaires were approved by a respondent including a financial director, head of the finance department, accountants, internal auditors, and external auditors. The study reached results, most notably the existence of a positive relationship and impact of strategic auditing through (comprehensiveness, objectivity, independence, periodicity) on improving the quality of financial reports.