THE IMPACT OF THE CHARACTERISTICS OF PROFESSIONAL SKEPTICISM OF THE EXTERNAL AUDITOR ON THE QUALITY OF FINANCIAL REPORTS IN THE ENVIRONMENT OF THE KINGDOM OF SAUDI ARABIA

Abstract

This study aimed to explore the impact of the characteristics of professional skepticism among external auditors on the quality of financial reports in the Kingdom of Saudi Arabia. This was done from the perspective of (692) external auditors affiliated with audit firms licensed to practice the profession. The study used a descriptive analytical approach using multiple regression. It also relied on a questionnaire, which included a set of questions to explore the opinions of those surveyed and achieve the study's objectives. The field study was conducted on a sample of (262) auditors. The study concluded that there is a statistically significant positive effect of the characteristics of professional skepticism among external auditors on the quality of financial reports through the impact of these characteristics on the relevance, reliability, and comprehensibility of the accounting information contained in these reports. Among the study's most notable findings is the need for various entities in the Kingdom of Saudi Arabia to prioritize the quality of their financial reports, ensuring the availability of qualitative characteristics of the accounting information contained in those reports, and the need for external auditors to engage in professional skepticism at all stages of the audit, taking into account obtaining appropriate and sufficient evidence to support their professional judgment.