*4.2.1 Differential analysis between the impacts of the EAC on the FP of conventional and Islamic banks*

According to **Table 9**, choosing a BIG4 auditor to verify and certify the CBs' financial statements presented a brake force that restricted their FP. This effect reflects the lack of professionalism, independence, or qualifications of the regional BIG4s' executive managers, accountants, or auditors. Although the presence of experts favorably preoccupied the CBs' profitability, the effect of the designation of a BIG4 on other CBs' FP indicators showed the opposite. This explains why, even if the EA is qualified and stimulates the CBs' profitability, there are other stronger internal factors that fill in the other measures. This scenario casts doubt on the reasons for the creation of wealth and profits as well as the dividend destination. But, above all, it shows that the BIG4 weakened and reduced the CBs' liquidity. CBs' managers and internal auditors broke down BIG4 choices and sometimes blocked their work, and vice versa. Instead of becoming a transparency certificate for economic agents and insurance of the accounting information's quality for financial statements' users, it turned out that the BIG4 appointment resulted in the demotivation of staff and the destruction of all purification initiatives of the big CBs' accounting documents. In our case, the BIG4 choice showed that the BIG4 negatively fulfilled almost all the FP measures except for profitability. This result explains why BIG4s' auditors hide the bad realities of their audited CBs by following a strong counseling approach. Hence, this leads us to confirm that in our conventional sample, the BIG4s auditors allowed the publication of the CBs' reports without reservations. However, in most selected countries, listed CBs have to publish their audited annual reports by internationally renowned and reputable BIG4s. However, choosing the big names does not mean maintaining audit quality and providing consistent information that reflects the CBs' reality. Along with the lack of effectiveness and solvency, CBs' commercial reputation does not provide assurance for their depositories and investors. Also, the lack of transparency in liquidity management does not protect owners' rights. The harmony between the bank's size and the auditors'size and independence is only a cover that hides several financial difficulties, many conflicting relationships, and many opportunistic behaviors between the CBs' managers. Consequently, over time, the shareholders will lose their control powers over their holdings in the bank capital to new share and bond buyers through an adverse selection transfer.

Contrary to what happened in the CBs, the certification of the IBs' financial statements by an independent, well-known, and international BIG4 auditor marked a positive effect on their FP. BIG4s' choice should normally draw the attention of those in charge to the sources of weaknesses in IBs' FP, account for the reasons for the bad IBs' financial situation, and solve the internal networks of conflicts of interest or conscious manipulations. This act generated a deposit for the various stakeholders to


**Table 9.**

*Summary of the close effects of the EAC on the FP of conventional and Islamic banks.*

*How to Successfully Select the Best-Performing Bank Based on the Best Auditor's… DOI: http://dx.doi.org/10.5772/intechopen.113201*

maintain compliance with Charia standards and to audit listed IBs. In fact, the large and listed IBs audited by BIG4s, including specialists in Fikh Al-Mouamalat and Islamic Charia, reflected the credibility and good quality of their financial statements in their users' eyes, especially the shareholders and donors. From the recorded results, we drew two conclusions. First, we stressed the basic IBs' EAC principles and the Islamic model's characteristics on the EAQ and the FP. Second, the total EAC impact on the IBs' FP is the combination of the individual EAC impacts on several IBs' factors. This does not happen haphazardly but is caused by the ethical culture advantage, which is inspired by Islamic Charia standards. IBs' Islamic culture played a fundamental and significant role in improving the efficiency of the external audit process. This demonstrated that in IBs, the accounting and financial information verified by a BIG4 auditor is much more accredited and credible than that published by local or smaller auditors. Consequently, the EAC is a principal tool for continuous assessment of the IBs' governance systems, which promote the internal control process, the detection of specific opportunistic behavior, and the management of financial, operational, liquidity, and profitability risks.
