Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad, a faculty member at the University of Karbala, co-authored a scientific research paper with Ms. Sanaa Manfi Thiab, an employee at the Housing Directorate – Karbala Branch. The research is titled:
“Developing and Enhancing Organizational Thinking Skills of the Auditor and Their Impact on Audit Planning”
and was published in the Technium Social Sciences Journal – Romania.
Research Aim:
Due to administrative and financial corruption, the auditing profession in Iraq has faced significant challenges for nearly two decades. Iraqi accounting and auditing bodies have sought to identify shortcomings in auditors’ practices, whether within auditing firms or among public auditors.
One important decision by the Iraqi Board of Accountancy and Auditing Profession was to require auditors in auditing firms to apply international auditing standards in the absence of local standards. It is crucial to note that there is no local auditing standard specifically for audit planning; therefore, Iraqi auditors rely on International Accounting Standard 300 (IAS 300). However, many concerns about audit failures arise from inadequate preparation for proper planning, especially with the emergence of new fraudulent practices that auditors cannot adequately detect or prepare for.
Improving the auditor’s competencies in various cognitive approaches may help in developing a high-quality audit plan according to IAS 300. The current study aims to evaluate the auditor’s organizational thinking and clarify its impact on the audit planning process.
Methodology:
A questionnaire was designed with three sections:
- The first section covered demographic information.
- The second section addressed the auditor’s organizational thinking, including eight dimensions:
- Analysis and evaluation
- Risk management
- Critical thinking
- Time pressure
- Strategic thinking
- Collaboration and communication
- Creative thinking
- Learning and development
Each dimension included four questions.
- The third section focused on audit planning, containing 14 questions based on International Auditing Standard 300.
Data analysis was performed using SPSS software, employing factor analysis and split-half methods to verify the validity and reliability of the questionnaire. Simple linear regression was used to test the research hypotheses.
Findings:
The study found a 98.9% correlation between organizational thinking and the audit planning process. This correlation varied when measuring each organizational thinking dimension’s effect on audit planning. The results indicated that organizational thinking assists auditors in critically analyzing and evaluating the institution’s work, aiming to improve its efficiency and effectiveness by examining various systems and processes to identify areas for improvement.
