مجلة ريحان للنشر العلمي مجلة علمية، محكمة، شهرية، مفتوحة الوصول
This study aims to investigate the type of opinion issued when Lebanon’s SMEs fail to comply with IFRS for SMEs and to determine whether the provision of non-audit services by external auditors and the duration of audit tenure impact these opinions. Data collection involves 128 external auditors in Beirut using questionnaires. The analysis employs simple logistic regression to investigate the impact of non-compliance on modified opinions and multiple logistic regression to assess determinants’ influence on modified opinions. Findings indicate that Beirut auditors rarely issue modified opinions for SMEs’ IFRS non-compliance. Furthermore, non-audit services have a negative impact on modified opinions, whereas audit tenure shows no significant effect. These results may imply a need to reassess external auditors’ practices to enhance SMEs’ compliance with IFRS in Lebanon. The study offers novel evidence of the relationship between audit opinions on IFRS compliance and proxies related to external auditors’ independence in a developing country. Professionals and regulators can utilize these findings to enhance external auditors’ involvement in accurately reflecting SMEs’ financial status according to IFRS.
Keywords: IFRS, SME, Audit opinion, Provision of non-audit Services, Audit Tenure.
Mohammad WEHBI, Professor at the Faculty of Economics and Business Administration, Lebanese University – LEBANON
Lama HAMZE, PhD Candidate at the Doctoral School of Law, Political, Administrative and Economic Sciences, Lebanese University – LEBANON
