Do the Different Components of the Internal Control System Significantly Contribute To the Quality of the Audit Report in Egypt? (Published)
This paper investigates the effects of internal control system (control environment, control activities, Risk assessment, information & communication and monitoring) (ICS) on the Quality of audit report (QAR). A questionnaire was used to collect data regarding the perceptions of the external and internal auditors on the effect of internal control system on the audit report quality. In order to support and confirm the questionnaire results, a number of interviews were conducted with two target groups. The questionnaire was distributed to (55) external and internal auditors, practicing the profession in Egypt after being reviewed by its professors in the Egyptian universities specialized in statistics.40 of which were received, this yields a response rate of 72%. The results of the statistical analysis showed a statistically significant effect of the information and communication, monitoring on the quality of the audit report. On the other hand, the relationship between (control environment, control activities and risk assessment) and audit report quality not significant. The research makes a significant contribution to knowledge and practice in the auditing field in Egypt, by identifying the justification for this finding is that internal control systems in Egyptian companies are flawed and lack the current scientific tools because most of these companies rely on old procedures to evaluate their internal control systems. Therefore, these procedures must be modified and overcomed.