The Influence of Competitive Pressure in the Auditing Environment on the Quality-Cost Balance of Audit Services

This study aims to examine the impact of professional competition in the auditing environment on the balance between the quality and cost of auditing services, in light of the growing challenges facing the auditing profession in Iraq. The study employed a descriptive-analytical approach through the design of a questionnaire distributed to a sample of external auditors working in audit firms and companies; the number of valid questionnaires for analysis was 152. The study addressed three main variables: professional competitive pressure as an independent variable, and audit service quality and audit cost as dependent variables. The study reached several conclusions, the most important of which are: 1. There is a statistically significant positive effect of professional competitive pressure in the auditing environment on the quality of audit services, with the model explaining 56.2% of the variation in the quality of audit services. 2. There is a statistically significant positive effect of professional competition pressure in the auditing environment on the cost of audit services, with the model explaining 15.4% of the variation in the cost of audit services. The study concluded with a set of recommendations, most notably the need to strengthen the role of professional bodies in regulating competition among audit firms, to establish controls that limit the impact of intense competition on audit service quality, and to encourage audit firms to adopt modern technology to improve efficiency.