Abstract
This research mainly focused on the external auditors’ responsibilities in Kurdistan regarding the going concern assumption which consider the future financial conditions of the companies. We interviewed two professional individuals in the Directorate of financial supervision office who are auditing both governmental organizations and private sectors in Kurdistan region. Likewise, 4 owners of the companies who have faced bankruptcy risk in Kurdistan have been interviewed as well. Their main job was manufacturing before they have failed. The purpose of this research is to persuade the companies and external auditors that the external auditor can play a significant role in recommending the companies to improve their financial situations.
Highlights
Since Kurdistan Regional Government faced financial crisis, there are a lot of companies had been faced bankruptcy risk
In order to interview some professional person in the Directorate of financial supervisions office in Sulaimani city, at the beginning we made 19 questions for both governmental organizations and companies but when we visited them we noted that there are two different departments for auditing purpose in Kurdistan, one for the companies, and the other one for the governmental organizations which named by Directorate of financial supervision office
In a country like UK if a company faced bankruptcy risk after the external auditor’s reviewing they would claim the external auditor according to the law because, they believed that improving financial position of any company is the responsibility of the company and external auditor as well
Summary
Since Kurdistan Regional Government faced financial crisis, there are a lot of companies had been faced bankruptcy risk. For this purpose we decided to interview some professional people in the accounting and finance field to take their opinion about this rapid bankruptcy. Depending on the international laws one of the external auditors’ responsibilities is giving his/her opinion about going concern assumption in his/her report after reviewing the financial statements of the companies. External auditor in Kurdistan is not responsible for mentioning going concern assumption in his/her report and this will not be helpful for the companies because, achieving advices from external parties will drive companies to reach their success. Companies will achieve advices, recommendations and awareness from professional people for any expected and unexpected condition in their business
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