The impact of the industrial specialization of the auditor On the Quality of Financial Reporting - An Empirical Study Companies listed on the Saudi Stock Exchange

          The research aimed to showing the impact of the auditor industrial specialization on the financial reports quality, by shedding light on the strategy of the auditor industrial specialization and its relation to the audit quality and the financial report quality . An empirical study was conducted to prove the imposition of the study that there is a direct relationship between the auditor industrial specialization and the financial reports quality. The study population is represented in the published financial reports of companies listed on the Saudi Stock Exchange. The study sample included 62 companies in 8 sectors during the period 20132016 The sample  consisted of 248 individuals. The variables of the study were two main variables that represent the hypothesis of the study: the auditor's specialization and the quality of the financial reports, and two control variables. The purpose of their inclusion is to show their effect on the relationship between the auditor industrial specialization And the quality of financial reports, which are the financial leverage and earnings profitability variables .   In order to prove the validity of the study, a simple regression relationship has been done between the variable of the auditor industrial specialization (independent variable) and the quality of the financial reports (a dependent variable), and to show the effect of the control variables was introduced in the model. The dependent variable is the quality of the financial reports , The independent variables are the auditor's specialty, the degree of financial leverage and the profitability of the stock. The results of the study showed that there is no statistically significant relationship between the variable of the auditor industrial specialization and the quality of financial reports in the Saudi business environment, The results of this study were agreed with the results of some previous studies. The audit  quality and the quality of the financial statements have been attributed to some characteristics of the client (size, financial performance, growth rates) and not to the auditor's specialty. There is an inverse correlation between the financial leverage and the quality of the financial reports, and there is no significant statistical relationship between the earnings per share and the quality of the financial reports .