The implications of activating external audit activities regarding examining exchange rate volatility on the audit quality: A proposed methodological framework and an experimental study.

Introduction
Financial firms represent an important aspect in achieving economic development, because of their role as financial intermediaries between facilities with a surplus and those with a deficit. Due to the significant and direct impact of the financial sector on the economy as a whole, the safety and strength of it must be ensured. Therefore, countries develop some policies and regulations for the financial sector to ensure continuity of activity. (Ernstberger, 2019)
On one hand, the exchange rate is an important determinant of economic activity and prices in open economies. The volatility of domestic currency increases (reduces) the cost of imports expressed in domestic currency which affects the domestic prices. Moreover, the volatility may stimulate (depress) net exports by lowering (increasing) the cost of domestic products for foreign consumers, stimulating (depressing) the demand for domestically produced goods and hence their domestic prices.
Exchange rate is defined is the value at which one currency can be exchanged for another. It indicates how much of one currency is needed to purchase a unit of another currency. Exchange rates are determined by the foreign exchange market and can fluctuate based on factors such as interest rates, economic stability, inflation, and geopolitical events. In international trade, a country’s exchange rate could be used as the barometer of its international competitiveness. Consequently, volatility in exchange rates has serious far-reaching consequences for policymakers, investors, firms and consumers. For instance, exchange rate volatility negatively affects investment decision making because it makes return on investment uncertain. (Adu et al., 2015)
On the other hand, audit quality is vital for maintaining the integrity of financial reporting, ensuring transparency, and fostering trust in the financial markets. The audit profession has given a 'great' attention to the audit quality through the professional auditing standards, and has focused on the audit outputs, which are represented by the auditor's report ( opinion) on the financial statements and reports (Smits et. al, 2019). Achieving quality audits involves a combination of factors, including strong regulatory frameworks, rigorous audit processes, competent auditors, and effective oversight. Quality audits enhance