The impact of voluntary disclosure on external audit quality in commercial banks: Evidence from Saudi Arabia

Abstract

This study aimed to examine the impact of voluntary disclosure on the quality of external audits in commercial banks within the Kingdom of Saudi Arabia. The research was conducted on a sample of nine commercial banks, selected using simple random sampling, covering the period from 2015 to 2024. The study employed content analysis of data obtained from the annual financial reports of the sampled banks. Statistical analysis was performed using the Statistical Package for the Social Sciences (SPSS), version 27, with simple regression analysis applied due to its suitability for this type of research. The findings revealed a statistically significant positive effect of the dimensions of voluntary disclosure—namely, social and environmental responsibility, financial performance, and non-financial performance—on the quality of external audits in Saudi commercial banks. Conversely, the study found no statistically significant effect of the voluntary disclosure of general bank information on audit quality in these banks. Among the key recommendations is the necessity to enhance the level of voluntary disclosure in commercial banks in Saudi Arabia and to leverage it to raise their efficiency.