scholarly journals The different shades of audit quality: A review of the academic literature

2021 ◽  
Vol 95 (1/2) ◽  
pp. 5-15 ◽  
Author(s):  
Dominic Detzen ◽  
Anna Gold
Keyword(s):  
Social Interactions ◽  
Quality Indicators ◽  
Historical Development ◽  
Audit Quality ◽  
Contextual Factors ◽  
Adverse Outcomes ◽  
Academic Literature

This paper reviews the academic literature on the different conceptualizations of audit quality. We argue that these discussions are rooted in the historical development of the audit profession, which has shown the need for audit quality indicators. However, we also demonstrate that audit quality means different things to different people, such that different conceptualizations of audit quality may lead to conflicts, as these views meet and need to be reconciled. The literature largely recognizes the multi-faceted nature of audit quality, which cannot be simply measured by a focus on adverse outcomes, such as restatements or fraud incidents. Instead, it is the combination of process, people and motivation that drives the quality of audit services provided by firms. Finally, the qualitative audit literature emphasizes that audit practice needs to be understood as a set of social interactions, which are embedded in a diverse set of organizational and contextual factors that together determine audit judgments and auditor behavior.

The Auditor as a Determining Factor on Derivative Financial Instrument Disclosures

2019 ◽  
pp. 70-93
Author(s):  
Kátia Lemos ◽  
Sara Serra ◽  
Amidel Barros
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Accounting Standards ◽  
Financial Instruments ◽  
Financial Instrument ◽  
Audit Firm ◽  
Academic Literature ◽  
Number Of Factors ◽  
Determining Factor

Based on the premise that the quality of the audit is related to the quality of the financial reporting, the purpose of this chapter is to verify if the audit is a determining factor in derivative financial instruments disclosures. However, the academic literature has revealed that audit quality is influenced by a number of factors, such as gender, experience, and auditor's fees, as well as the type of audit firm (Big4 or not Big4). In order to achieve the proposed objective, a disclosure index was prepared, based on the requirements of the International Accounting Standards Board (IASB), applied to companies listed on Euronext Lisbon, excluding the sports corporations. The results revealed that the level of disclosure is influenced by the size of the audited company and by the auditor's gender, being greater in the larger companies and in the companies audited by a male auditor.

scholarly journals Audit Quality Indicators: Insights from the Academic Literature

2012 ◽  
Author(s):  
W. Robert Knechel ◽  
Gopal V. Krishnan ◽  
Mikhail Pevzner ◽  
Lori B Shefchik ◽  
Uma Velury
Keyword(s):  
Quality Indicators ◽  
Audit Quality ◽  
Academic Literature

scholarly journals Social Ties impacting Audit Quality Exploring Government Entities

2021 ◽  
Vol 7 (4) ◽  
Author(s):  
Madiha Irshad ◽  
Amna Noor
Keyword(s):  
Social Interactions ◽  
Audit Quality ◽  
Social Ties ◽  
Quality Of Reporting ◽  
Qualitative Research Design ◽  
Good Reputation ◽  
Indirect Relationship ◽  
Government Auditing ◽  
Theoretical Saturation

Purpose: The purpose of the study is to analyze the first hand data regarding intimacies between government entities and government audit institution of Pakistan, to see its impact on the quality. Design/Methodology/Approach: Qualitative research design is used to explore the concept base on theoretical saturation technique. Findings: The results revealed by default presence of social ties among interactive agents. It further explores indirect relationship between audit quality and social interactions in the presence of petty corruption due to familiarity, unwarranted mutual trust and favoritism however this relationship is shifted toward direct relationship in the presence of material corruption due to fear of losing good reputation, loss of job, fear of departmental inquiry, threat of floating your weaknesses before your rival clique. Implications/Originality/Value: The results presented in this paper should therefore be of great interest to government, regulators and standard-setters charged with developing accounting standards to improve the audit quality of reporting information related to existing government auditing setup.

scholarly journals The Quality of External Audit in OHADA Space: A Qualitative Study with Board of Director’s Members’ Perception as Understanding Variable

2016 ◽  
Vol 2 (2) ◽  
pp. 11
Author(s):  
Hanko Osée
Keyword(s):  
Financial Market ◽  
Audit Quality ◽  
Qualitative Approach ◽  
Audit Committees ◽  
Technical Process ◽  
New Approach ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Prior Literature

Audit quality has been evaluated in academic literature accordingly with auditor qualities, due to the difficulties of observing auditing technical process itself. The qualities of a good auditor are then competence and independence, sine qua none conditions of audit quality. That approach is otherwise valid only if there is a valuable framework like stock market where auditor’s competence and independence could be observed. In OHADA space countries, the financial market is approximately off. It is therefore impossible to assess audit quality the way it has been done in prior literature. This study suggests a new approach of assessing audit quality in OHADA countries in relation with audit committees member’s perception of auditing process. Using an innovative qualitative approach inspired from Manita (2008), the results suggest to take into account the auditor’s knowledge of the company, the relevance of the identified zone of risks and the degree of communication with the board of directors.

Criteria for evaluation of the coordinate measurements quality of parts geometric parameters at pilot-experimental production

2019 ◽  
pp. 3-8
Author(s):  
N.Yu. Bobrovskaya ◽  
M.F. Danilov
Keyword(s):  
Quality Indicators ◽  
Quality Management System ◽  
Technical Specification ◽  
Experimental Production ◽  
Technological Heredity ◽  
Coordinate Measurements ◽  
Reasonable Choice ◽  
The Stability ◽  
Geometric Elements

The criteria of the coordinate measurements quality at pilot-experimental production based on contemporary methods of quality management system and traditional methods of the measurements quality in Metrology are considered. As an additional criterion for quality of measurements, their duration is proposed. Analyzing the problem of assessing the quality of measurements, the authors pay particular attention to the role of technological heredity in the analysis of the sources of uncertainty of coordinate measurements, including not only the process of manufacturing the part, but all stages of the development of design and technological documentation. Along with such criteria as the degree of confidence in the results of measurements; the accuracy, convergence, reproducibility and speed of the results must take into account the correctness of technical specification, and such characteristics of the shape of the geometric elements to be controlled, such as flatness, roundness, cylindrical. It is noted that one of the main methods to reduce the uncertainty of coordinate measurements is to reduce the uncertainty in the initial data and measurement conditions, as well as to increase the stability of the tasks due to the reasonable choice of the basic geometric elements (measuring bases) of the part. A prerequisite for obtaining reliable quality indicators is a quantitative assessment of the conditions and organization of the measurement process. To plan and normalize the time of measurements, the authors propose to use analytical formulas, on the basis of which it is possible to perform quantitative analysis and optimization of quality indicators, including the speed of measurements.

Using the alveograph in developing requirements for the quality of flour for wafer sheet production

2020 ◽  
Vol 29 (12) ◽  
pp. 52-58
Author(s):  
E.P. Meleshkina ◽  
◽  
S.N. Kolomiets ◽  
A.S. Cheskidova ◽  
◽  
...  
Keyword(s):  
Rheological Properties ◽  
Quality Indicators ◽  
Wheat Flour ◽  
Mathematical Statistics ◽  
Intended Purpose ◽  
The Future ◽  
Relationship Of ◽  
The Relationship

Objectively and reliably determined indicators of rheological properties of the dough were identified using the alveograph device to create a system of classifications of wheat and flour from it for the intended purpose in the future. The analysis of the relationship of standardized quality indicators, as well as newly developed indicators for identifying them, differentiating the quality of wheat flour for the intended purpose, i.e. for finished products. To do this, we use mathematical statistics methods.

PROFESSIONAL ATTRIBUTES OF INTERNAL AUDITORS IN RIAU

2018 ◽  
Vol 3 (2) ◽  
pp. 161
Author(s):  
Satria Tri Nanda
Keyword(s):  
Regression Analysis ◽  
Audit Quality ◽  
Hypotheses Testing ◽  
Internal Auditors ◽  
Factors Influencing ◽  
Professional Attributes ◽  
Professional Care ◽  
Positive Effect

<p><em>This research aims to identify the factors influencing the audit quality of auditors at Inspektorat Provinsi Riau. The population in this research were auditor, examiner, assistant examiner, and P2UPD (Pengawas Penyelenggara Urusan Pemerintah di Daerah) in charge at the Inspectorate in Riau Province and all Inspectorates in Districts and Cities in Riau Province. A total of 290 set of questionnaire were sent and a number of 184 of questionnaires were processed. Using regression analysis conducted by SPSS, the hypotheses testing analysis results show that experience, responsiveness, professional care, executive involvement</em><em>t, planning</em><em> and auditability have significant and positive effect on audit quality. These results indicate that the higher the levels of experience, responsiveness, professional care, executive involvement and auditability of Inspectorate officials, the better the quality of audit performed by the Inspectorate Officials of Riau Province.</em></p>

Audit Quality of Chinese ADR Engagements

2016 ◽  
Vol 31 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Aloke (Al) Ghosh ◽  
Elisabeth Peltier ◽  
Cunyu Xing
Keyword(s):  
Audit Quality ◽  
Emerging Market ◽  
Financial Statements ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Reverse Mergers ◽  
Chinese Companies ◽  
Big 4 ◽  
Depositary Receipts

SYNOPSIS The controversy over Chinese reverse mergers has led to concerns about the audit quality of all U.S.-listed Chinese companies. Because a sizeable number of foreign firms cross-list their shares as American Depositary Receipts (ADRs) issued by U.S. depositary banks (as opposed to direct listings), we study how auditors have managed their audits of Chinese ADRs. Our motivation for examining Chinese ADRs is based on the findings that cross-listing via the ADR process is beneficial for U.S. shareholders. We find that relative to ADRs from countries other than China, and relative to directly listed Chinese companies, Chinese ADRs are more likely to be associated with a Big 4 auditor and are less likely to restate prior-period financial statements. We also find that Chinese ADRs pay significantly higher fees than other emerging market ADRs and Chinese direct-listings. Collectively, these results suggest high audit quality for Chinese ADRs, which is in sharp contrast to the Chinese direct-listing results. Using Tobin's Q as a measure of market value, we find that the stock market rewards Chinese ADRs, indicating that investors incorporate the benefits of higher audit quality when evaluating Chinese ADRs.

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