Two academics from University of Karbala and University of Babylon (Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad – Assist. Lecturer Amal Fadel Akho Basha) have published a scientific study titled: “The Impact of Audit Quality on Financial and Non-Financial Performance: Evidence from Iraqi Industrial Companies.”

You are currently viewing Two academics from University of Karbala and University of Babylon (Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad – Assist. Lecturer Amal Fadel Akho Basha) have published a scientific study titled: “The Impact of Audit Quality on Financial and Non-Financial Performance: Evidence from Iraqi Industrial Companies.”

Two academics from University of Karbala and University of Babylon (Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad – Assist. Lecturer Amal Fadel Akho Basha) have published a scientific study titled: “The Impact of Audit Quality on Financial and Non-Financial Performance: Evidence from Iraqi Industrial Companies.”

The authors are:

  • Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad, University of Karbala, College of Administration and Economics, Department of Accounting.
  • Assist. Lecturer Amal Fadel Akho Basha Al-Kaabi, University of Babylon.

They published this joint study in the Technium Journal of Social Sciences (Indonesia).

Abstract:

In a constantly changing business environment, the integration of audit quality and financial performance in industrial companies is crucial for the company’s success and sustainability. Audit quality complements this relationship.

Accordingly, the current study aims to determine the impact of audit quality on financial performance, examine the relationship between audit quality and financial performance, and assess its effect on non-financial performance in Iraqi industrial companies to improve overall performance and promote sustainability.

For this purpose, a questionnaire of 60 items was developed, equally distributed across three domains: audit quality, financial performance, and non-financial performance.

The study population consisted of internal auditors and accountants from 29 public industrial companies and 21 private joint-stock industrial companies. A random sample of 154 individuals was surveyed. Demographic data were analyzed using descriptive statistics, and hypotheses were tested using simple and multiple linear regression analyses.

Findings:

  • There is a relationship between audit quality and financial performance, with a correlation of 27.6%, indicating a low association.
  • The correlation between audit quality and non-financial success was 49.4%, showing a stronger relationship.
  • Auditor experience in the sector and awareness of quality importance significantly affect audit performance.
  • The presence of Key Performance Indicators (KPIs) linked to strategic objectives enhances the financial performance of industrial companies.
  • Transparency in environmental, social, and governance reports influences investment and financing decisions.