The Reality of Strategic Vigilance and Its Impact on the Quality of Financial Reporting

An Analytical Study in the Large Taxpayers Department/Iraq

Abstract

Strategic vigilance and the quality of financial reporting play a significant role in providing, processing, and analyzing the necessary information to beneficiaries and decision-makers to take appropriate measures and decisions related to the performance of the General Tax Authority to ensure the continued collection of tax amounts. The study aims to identify the reality of strategic vigilance in the quality of financial reporting. The researchers relied on a hypothesis for the variables of the problem, which was represented by the following question: Does the quality of financial reporting depend on strategic vigilance in auditing financial statements to estimate the tax amount? They also adopted two approaches: the inductive approach in conducting a theoretical study, and the analytical approach used in the practical aspect in personal interviews and data analysis. The researchers used statistical indicators in line with the study hypothesis, and the study proved the validity of the hypothesis regarding the role of strategic vigilance in the quality of financial reporting of audited financial statements in estimating the tax amount. The study reached the most important conclusions that the joint stock companies accountable for tax in the tax administration apply the requirements of strategic vigilance and are among the most important institutions that apply the quality of financial reporting in implementation of Income Tax Standard No. (12). The most important recommendations are the necessity of applying and neutralizing the tax examination procedures when conducting the examination of reports and financial statements, which contributes to encouraging most taxpayers to use strategic vigilance in the quality of financial reporting on accounting information and evidence and indications for its audit, and then the tax examination process can be completed with less time and effort and with more accuracy to reach the taxable income.