AUDIT IN THE SYSTEM OF FINANCIAL CONTROL AND THE ROLE OF PROFESSIONAL SKEPTICISM IN IMPROVING AUDIT QUALITY ON THE EXAMPLE OF IRAQ

Abstract

Relevance. Taking into account that nowadays audit is recognized worldwide as an important element of the system of market relations, which is confirmed by numerous studies of the theory and practice of the organization of the financial control system and audit activity, the study of the essence of audit in the system of financial control and identification of actual ways to improve the quality of audit is a very relevant direction. Purpose of the study. To determine the role of audit in the system of financial control and to determine the influence of professional skepticism on the quality of auditor's work. Hypothesis of the study: based on the conducted research to confirm the impact of professional skepticism on improving the quality of external audit in the Republic of Iraq, considering the empirical evidence obtained. Research Methods. Literature analysis was conducted, as well as questionnaire and empirical methods through statistical analysis of data for the second part of the study related to professional skepticism as a component of audit quality. Results. Having analyzed the sources on the topic, it can be said that audit is often considered in the system of financial control, with audit being an independent type of control, distinguished by the fact that it checks not only financial indicators, but also other business processes, including in-depth analysis of the subject's performance indicators. Also, the study confirmed the hypothesis that the application of professional skepticism by the external auditor leads to an increase in the credibility and accuracy of the external audit and audit process, which helps auditors to understand and anticipate management behavior and that fraud may be committed hidden in the financial statements. The findings of the study can be used to determine the relationship between professional skepticism and external audit quality in organizations of different forms.