Evaluation of the Feasibility and Importance of Using Statistical Analysis Models to Predict Financial Failure in the External Audit Profession

The subject of evaluating the ability of companies to continue in its activity or financial failure in the future is one of the important topics dealt with by academic and professional studies by universities and professional accounting and auditing organizations, especially after the collapses and financial failures of many international companies and the issuance of the International Auditing Standard No. (570) on the continuity of companies. our current study aims to focus the importance of using the models of predicting financial failure by the external auditor and the management of companies to evaluating the ability of these companies to continue or financial failure in the future The study has reached several conclusions, The most important is assessing the ability continuation of companies or their financial failure in the future by the external auditor and the management of companies in accordance with the guidelines of the International Auditing Standard No. (570) is necessary to avoid financial risks to companies and lead to financial failure and stop and liquidate legally, after criticisms and doubts about the usefulness and importance of the external audit profession and the research reached several recommendations , the most important Work on issuing local legislation in Iraq and Iraqi local accounting standards that require the management of Iraqi companies and external auditors in these companies to carry out the professional procedures necessary to assess the ability of these companies to continue their work or not in the future