The role of external auditor independence in promoting economic development
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Abstract
The research aims to understand how the independence of the external auditor affects enhancing confidence in financial reports and increasing investment opportunities, which leads to driving economic development. And to study the impact of auditors on the perception of their professional independence and the role of this perception in enhancing effective auditing practices. The research focused on analyzing the relationship between the independence of the external auditor and enhancing economic development at Rafidain Bank - Baghdad Branch. The study relied on collecting data from a questionnaire directed to a sample of department managers and employees, where 60 questionnaires were distributed and 49 of them were returned with a response rate of 81.7%. The questionnaire was improved based on the arbitration of specialized professors, and the reliability was measured using the Cronbach's alpha coefficient, which showed a high level of reliability, which enhances the credibility of the results extracted from the data. The research found that banks' commitment to supporting key economic sectors and social responsibilities is one of the main drivers of enhancing economic development, indicating the increasing role of banks in achieving economic sustainability. And that the independence of the external auditor explains a large percentage of changes in enhancing economic development, which highlights the strong relationship between independence and contribution to achieving comprehensive economic growth. The research recommended intensifying banks' efforts to confirm their commitment to social responsibilities and support key economic sectors, which enhances investors' and society's confidence in their developmental role. And providing advanced training programs for external auditors to develop their skills in line with modern requirements in the field of auditing and economic development.
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