Audit Review and the Change of Audit Quality

2021 ◽  
Vol 22 (2) ◽  
pp. 133-160
Author(s):  
Soo-yeol Choi ◽  
Hee Chun Roh ◽  
Jin-ha Park
Keyword(s):  
Audit Quality ◽  
Audit Review

Audit Partner Perceptions of Post-Audit Review Mechanisms: An Examination of Internal Quality Reviews and PCAOB Inspections

2012 ◽  
Vol 27 (1) ◽  
pp. 23-49 ◽  
Author(s):  
Richard W. Houston ◽  
Chad M. Stefaniak
Keyword(s):  
Audit Quality ◽  
Academic Research ◽  
Internal Quality ◽  
Litigation Risk ◽  
Accounting Firms ◽  
Audit Review ◽  
Public Company ◽  
Perceived Effects ◽  
Partner Perceptions ◽  
And Behavior

SYNOPSIS This study reports the results of a survey of 107 audit partners from large public accounting firms that investigates and compares partner perceptions of Public Company Accounting Oversight Board (PCAOB) inspections' and Internal Quality Reviews (IQRs): (1) predictability, (2) conduct, (3) reviewer qualifications and behavior, and (4) effects (i.e., on audits, partners, and firms). A majority of partners can or try to predict the year of both reviews and perceive that, relative to PCAOB inspections, IQR reviewers have a better understanding of firms' audit methodologies, IQRs focus more on whether firms follow their methodology, and IQRs examine more audit areas. In addition, partners believe that PCAOB inspectors are more focused on finding deficiencies than are IQR reviewers, and that IQR feedback is more timely and helpful for improving audit quality. Both reviews are perceived to impact professional reputation; however, partners perceive that PCAOB inspections increase their firms' litigation risk more so than do IQRs. Finally, less experienced partners perceive reviews as more invasive and as posing more consequences than do more experienced partners. We provide credible, informed perceptions of partners directly involved in both PCAOB inspections and IQRs (which heretofore have not been examined directly by practitioner or academic research) that should be beneficial to accounting researchers, practicing auditors, and regulatory bodies interested in understanding the perceived effects and effectiveness of PCAOB inspections and IQRs.

The Effects of Audit Review Format on Review Team Judgments

2009 ◽  
Vol 28 (1) ◽  
pp. 95-111 ◽  
Author(s):  
Christopher P. Agoglia ◽  
Richard C. Hatfield ◽  
Joseph F. Brazel
Keyword(s):  
Quality Assessment ◽  
Audit Quality ◽  
Mediation Analyses ◽  
Face To Face ◽  
Audit Review ◽  
Documentation Quality ◽  
Review Team ◽  
Workpaper Review ◽  
Insight Into

SUMMARY: The promulgation of standards (e.g., PCAOB 2004b; IFAC 2008b) highlights the importance of workpaper documentation quality and its influence on audit quality. Our study matches audit workpaper preparers with reviewers to examine how alternative workpaper review methods affect sequential audit review team judgments through their impact on preparer workpaper documentation. While reviewers maintain the option of reviewing workpapers on site (“face-to-face review”), they can now also perform their reviews electronically from remote locations (“electronic review”) because of technological advancements such as email and electronic workpapers. Recent research has found that review mode can affect the judgments of auditors preparing the workpapers. Our study extends the literature by examining the extent to which review mode (electronic versus face-to-face) affects the quality of documentation in the workpapers and whether reviewers are able to discern and compensate for these documentation quality issues. Our results indicate that reviewers' judgments are ultimately affected by the form of review expected by their preparer. We test two alternative mediation models to provide insight into why the review format affects reviewer judgment quality. Mediation analyses suggest that the effect of review mode on reviewer judgments is mediated by a documentation quality assessment gap. Specifically, with electronic review, reviewers' burden to recognize and compensate for lower-quality documentation was generally greater, often resulting in lower-quality reviewer judgments than when the mode of review was face-to-face. These results suggest that the effect of review mode can persist to the reviewer's judgment through its influence on preparer workpaper documentation and the resulting documentation quality assessment gap.

FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS AUDIT

2019 ◽  
Vol 5 (1) ◽  
pp. 50-63
Author(s):  
Heru Heryanto ◽  
Nur Laela ◽  
Riana R Dewi
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Audit Quality ◽  
Positive Influence ◽  
T Test ◽  
Coefficient Of Determination ◽  
Analysis Tool ◽  
Validity And Reliability ◽  
Test Analysis ◽  
Analysis Technique

This study aims to determine the significance of the influence of competence, independence, professionalism, auditor experience, accountability, and auditor's knowledge of audit quality. This study uses a questionnaire with a population and sample, namely all auditors who work at the Public Accounting Office (KAP) in the Special Region of Yogyakarta and Surakarta. Sampling techniques using Convenience Sampling with a sample of 61 respondents. The data used in this study is a questionnaire using a Likert scale 1 to 5. The data analysis technique used in this study is multiple linear regression using the SPSSprogram for Windows. The analysis tool in this study using validity and reliability, the classical assumption (normality test, multicollinearity, heteroscedasticity test and autocorrelation test) while the data were analyzed using multiple linear regression test, t test, F test and the coefficient of determination (R2).Based on the results of the t-test analysis performed, it shows that there is a positive influence of competence, independence, professionalism, auditor experience, accountability, and auditor's knowledge of audit quality and simultaneously competency, independence, professionalism, auditor experience, accountability, and auditor knowledge variables affect quality audit

Pengaruh Hubungan Politik Terhadap Manajemen Laba Pada Perusahaan Sektor Jasa Dengan Variabel Kontrol Ukuran Perusahaan Dan Kualitas Audit

2018 ◽  
Vol 16 (2) ◽  
pp. 30
Author(s):  
Dwikky Darmawan ◽  
Weny Putri
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Influence ◽  
Service Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Political Connection ◽  
Discretionary Accrual

The purpose of this study is to determine the effects of political connection toward the earnings management of service sector companies with control variables firm size and audit quality. Firm�s political connection measured by using dummy variable. Earnings management is proxied by discretionary accrual which is measured by using Modified Jones Model. The research data applied in this study are the secondary data which are taken from the annual reports of service sector companies that listed in Indonesian Stock Exchange of 2016-2017 periods. There are 330 observations fit as sample, which are taken by using purposive sampling method. Data are processed by applying the multiple linear regression test. The result show that the political connection had positive but not significant influence to earnings management. Firm size had negative but not significant influence to earnings management. Whereas the audit quality had a negative and significant influence to earnings management.

The Conditional Effects of Abnormal Audit Fees on Audit Quality

2020 ◽  
Vol 45 (4) ◽  
pp. 291-332
Author(s):  
Kyung Soon Kim ◽  
Seun Young Park ◽  
Jin Hwon Lee
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Conditional Effects

FRAUD CONFIRMATION, CLIENT SATISFACTION AND CLIENT LOYALTY

2019 ◽  
Vol 1 (1) ◽  
pp. 39
Author(s):  
Ngurah Pandji Mertha Agung Durya
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Client Satisfaction ◽  
Audit Quality ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Quality Attributes ◽  
Path Model ◽  
Coefficient Of Determination ◽  
The Government

<p>This study aims to find evidence, the influence of Audit Quality Attributes, Client Satisfaction and Client Loyalty, which are moderated by Fraud Confirmation. The research was conducted at the BKM, a community-based organization, formed by the Government, through the <em>Kotaku</em> Program. The research used Regression statistical analysis and conducted a hypothesis test. Regression analysis used includes Simple Linear Regression Analysis, Multiple Regression Analysis, and MRA Regression Analysis, and Path Model Linear Regression Analysis. This study also pays attention to the calculation of the coefficient of determination to give an idea of the ability of the model in explaining the phenomenon of Client Satisfaction and Client Loyalty. The result that both partially and simultaneously, Audit Quality Attributes, Fraud Confirmation affected Client Satisfaction and Loyalty. The research also succeeded in proving that Client Satisfaction mediates the effect of Audit Quality Attributes on Client Loyalty, but failed to provide empirical evidence, that the Fraud Confirmation moderated the effect of Audit Quality Attributes on Client Satisfaction and Loyalty. Contribution to audit practices, where it is important to realize Client Satisfaction through Audit Quality Attributes and Fraud Confirmation, especially in situations where Fraud acts are suspected.</p>

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