International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Auditors’ Decision to Accept New SME Clients in Saudi Arabia and Auditors’ Characteristics
Qasim M. Zureigat

This study aims to investigatehow Saudi auditors assess whether to accept or reject new SME clients based on the guidelines inthe Guide to Using ISAs in the Audits in Small and Medium Sized Entities issued by the International Federation of Accountants in 2011, which provide a detailed illustration for professionals on how to perform audits in SMEs due to their special characteristics, and the auditors’ characteristics that affect this decision. A questionnairewas developed and distributed to all Saudi auditors, and119 responses were received. The results indicate that Saudi auditors follow the guidelines related to the audit firm’s ability to conduct the audit task, audit firm independency, and preconditions, while they donot follow the guidelines related to client integrity and the risks associated with the audit task. A further analysis shows that auditors’ experience and qualifications donot affect the auditors’ decision onaccepting new clients, while only being one of the Big4 auditors positively affects this decision.

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