The causes of fraud in financial reports between third party confidence in the output of the audit profession and the inevitable development of the profession: the case of Mobily

The added economic value of the audit of the financial statements by the external auditor is to give confidence to the financial reports data, which entails the possibility of using these data, once it has been turned into information, in making a different combination of economic decisions by the third party. Economic Unity). This added value has been taken for granted until the economic circles were surprised by a set of financial meltdowns of a number of major entities in the United States and other countries, which led to the criticism of the third party to the profession of external audit, because of its failure to exercise its supposed role as a warning bell For the public interested in the economic unity of the third party.
The validity of the previous criticisms was confirmed as a result of the discovery of the underlying causes of these crises, which pointed to the explicit accusation - in most cases - of the role of the review, which some considered a helpful role - if not complicit or concealed - in the occurrence of these crises (many writings have been launched) These crises have the term "financial scandals". This resulted in a crisis of confidence between the profession and the third party of the interested public, which resulted in the profession trying to restore the confidence of the third party, through a number of legislation (such as the Oxley Act "Sarbanes - Oxley Act"), which tried to strengthen the independence of the external auditor in In addition, a number of professional organizations have been established to impose a kind of control over the work of external auditors, such as the Public Company Accounting Oversight Board (PCAOB). The above measures represent a kind of external control over the profession, especially in the case of companies listed on the stock exchange.
In other words, financial crises or deficiencies discovered in some professional practices (often found in developed countries in terms of organization of the audit profession) are the engine behind the development of the profession in most, if not all, cases. It is also clear from extrapolation of the reality of professional development efforts that they often start - if not always - in developed countries, and then move gradually - partly or wholly - to the least developed countries in the field of efforts to develop the profession of external auditing. They are first discovered and treated first in those developed countries, and then the infection is transmitted and discovered to other countries, which mimic the methods - partly or completely - reached by the developed countries, both in the discovery or in the treatment. The speed and accuracy of the simulation depend on the gap of professional progress between developed and developing countries. Where the gap is narrowed, the simulation speed increases without its accuracy.In contrast, the larger the gap, the greater the simulation accuracy without its speed, i.e. in the more developed countries, the interest in discovering deficiencies is relatively fast compared to the less developed countries, but the more advanced countries It is far from emulating the treatment methods applied by the developed countries, because of its awareness of the environmental differences that may hinder the application of the same treatment methods as well as the availability of distinct professional cadres who can devise more effective treatment methods. In contrast, in less developed countries, interest in detecting deficiencies is relatively slow compared to more developed countries, and less developed countries largely emulate the treatment methods applied by developed countries, either because they are not aware of the environmental differences that may hinder the application. The same methods of treatment or lack of distinct professional cadres that can devise more effective treatment methods and more appropriate to the environmental conditions of these countries.