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Abstract The aim of this research is to explore the perceived responsibility of the external auditors to check the client{u2019}s entity adherence to the Egyptian code of corporate governance and to issue a report stating their opinion on the corporate governance effectiveness. In addition, this research aims to explore the additional costs and benefits associated with this extra audit task. The research uses the questionnaire with 301 auditors working in the Big Four agencies in Egypt which are PricewaterhouseCoopers (PwC), Deloitte Touche Tohmatsu Limited, Ernst & Young (E&Y) and Klynveld Peat Marwick Goerdeler (KPMG). By analyzing the data gathered through the questionnaires, it is found that although issuing an extra opinion on CG compliance would increase the costs of audit firm, auditors are willing to issue it as they are aware of CG importance to the audit work and the client{u2019}s entity. Moreover, the benefits of issuing an opinion on CG effectiveness exceed its costs and external auditors are already assessing CG effectiveness during the audit program. Consequently, the research recommends that there should be a rule obligating external auditors to issue an opinion on CG compliance along with their opinion on the annual financial statements and the internal control; to increase investors{u2019} confidence in their corporations and the capital market as whole, which will finally decrease the cost of capital and enhance its growth |