Factor Affecting Audit Quality: A Study of the Companies Listed in Bombay Stock Exchange (Bse) (original) (raw)

The Determinants of Audit Quality

The Determinants of Audit Quality, 2022

This research investigates the impact of auditor experience, auditor education, client's internal controls, and audit procedures performed on audit quality in the UAE. An online Likert scale-based questionnaire was distributed to auditors with financial audit experience in the UAE. Multiple regression analysis was adopted to analyze data since more than one independent variable was investigated. The results demonstrate that auditor experience and auditor education are significantly and positively associated with audit quality, while the client's internal controls and audit procedures are not associated with audit quality. The study's findings will assist recruiters in identifying the appropriate criteria for hiring new auditors and firms in allocation human capital to their large and sensitive clients. Additionally, the research may aid accounting institutes and audit firms in developing and improving their continuing education offerings.

Discourses of Determinants Factor in Audit Quality

ACEBISS 201

Rapid business competition causes companies to improve the quality of products and services produced. In addition to improving the quality of its output, companies also need the services of a reliable auditor to examine financial statements so that they can be trusted with fairness. However, there is a phenomenon that the Public Accountant has not fully obtained sufficient and appropriate audit evidence and has not fully complied with the professional code of ethics in accepting and carrying out audit engagements. The purpose of this study is to find empirical evidence about the effect of audit evidence and enforcement of the code of ethics on audit quality, and to know the impact simultaneously, as well as partially. The research sample was taken using a purposive sampling technique that is as many as 54 public accountants in the city of Bandung, West Java-Indonesia. The statistical method used to test the hypothesis is multiple regression. The results of this study by using the test of the coefficient of determination obtained the value of the coefficient of determination or R-square of 23.8%, which shows the variable that the audit evidence and ethics code enforcement variables simultaneously influence the audit quality variable. Furthermore, a partial test of audit evidence has a significant positive effect on audit quality, but the enforcement of a code of ethics does not affect audit quality.

The Determinants Factors on Audit Quality: A Theoretical Approach

2020

The evaluation of the audit quality is a current topic, taking into account that the increase of the information volume which can be found in the financial statements, requires a high effort to perform a quality audit mission, but also necessary. The research methodology proposed in this article is qualitative, by systematizing the most relevant scientific articles in which the issue of indicators influencing the quality of the audit services was debated. The analysis resulted in several indicators for measuring the quality of the audit services, the most relevant being regarding the characteristics of the auditor, the size of the company, the rotation of the auditors or information transparency. The main conclusion is that the quality level of the audit services provided can be influenced by many factors, both internal and external, but we consider that regardless of the factors that act on the quality of the audit, the professional judgement and the ethical actions of the auditors...

Predictors of Audit Quality: A Confirmatory Study

Quality-Access to Success, 2024

This study investigated the predictors of audit quality according to registered external auditors in Indonesia. Even though there are improvements in audit reports and practices, there is still some fraud and audit risk that affects the credibility of financial reports. This research is based on a random sample technique where 304 registered external auditors in Indonesia answered self-constructed research instruments and their validity was ascertained with exploratory factor analysis, where they resulted as good. The first-party distributed data were analyzed with multiple regression to determine the predictors of audit quality. The study revealed that internal controls, governance, and audit culture were positively significant predictors of audit quality. Based on this outcome, the Indonesian registered external auditors affirm that the detection, prevention, and correction controls, the systematic rules, practices, and process of directing and controlling a firm, and the values, beliefs, behaviors, and norms of the auditor and the audit firm increase fraud detection, reduce audit risk, and increase the credibility of the audited financial reports. The study recommends further research into the 39.7% excluded predictors of audit quality.

Factors that affect audit quality

2020

The title of this research is factors that affect audit quality. This research aims to know, analyze, and show the effects of the relationship between experience, auditor professionalism, time budget pressure, audit tenure, and knowledge of detecting errors on audit quality. The research population is all auditors at a public accounting firm in Jakarta. This research used a purposive sampling technique with some criteria for the research sample. The research sample obtained was 89 respondents. This research used survey technique as collecting the data with sharing questionnaire and multiple linear regression with SPSS software for the data analysis technique. The result of this study indicates that auditor experience and knowledge of detecting errors have a positive effect and significant on audit quality, whereas auditor professionalism, time budget pressure have a positive effect but not significant on audit quality and audit tenure have a negative effect but not significant on au...

Corporate Governance and Audit Function: An Indian Perspective

2012

A major part of the debate on corporate governance centers on the pivotal role played by auditors. If auditors’ report plays a significant role in corporate governance mechanism, engaging independent statutory auditors would certainly strengthen accountability. The present paper is motivated by such a viewpoint, as it develops a model to explain audit qualifications for select listed Indian companies. It also explores the oversight role of audit committees in enhancing audit quality. The findings provide evidence that the occurrence of audit qualifications is associated with return on assets and audit fees. The type of audit firm and accounting committee diligence do not affect auditors’ propensity to qualify their opinions. The paper concludes by proposing a case for reforms in the realm of reporting and auditing procedures.

An Investigation into the Relationship between Audit Committee and Audit Quality

2013

The research aims at the examination of the relationship between audit committee and audit quality. The present research is a descriptive survey focusing on correlation relationships. The independent variable intended in this study has been audit committee and the focus of the study is mainly on the impacts of this variable on audit quality. The statistical population in this study includes 1146 Official Accountants. Using simple-random sampling to determine the sample size, 94 persons were selected as the statistical sample. The results revealed a statistically significant relationship between audit committee and audit quality. The findings also showed that the audit committee can be promoted the effectiveness of the independent auditors, internal auditors, internal controls, disclosure of the financial statements and the amelioration of the auditing reports.

Auditors’ and auditees’ perception on the internal audit quality

Audit Financiar, 2016

The purpose of this study is to examine the influence of audit planning, fieldwork audit, audit reporting, follow-up action of the audit results, the auditor team competence, and independence of the auditor team on the internal audit quality at the General inspectorate of the Ministry of Finance, Indonesia. The study uses a research instrument in the form of a questionnaire which is submitted to the auditor team of the Inspector General and the head of office as the auditee in the Ministry of Finance. We also conducted interviews with senior auditors at the General Inspectorate and officials as the auditee at the Ministry of Finance. The sample is analysed by multiple regression analysis. The results show that the internal audit quality according to the auditor team perception is affected by audit planning, audit reporting, and auditor team competence. Fieldwork audit, follow-up action of the audit results, and the independence of the auditor team do not affect the internal audit quality. From the auditee's perception, the internal audit quality is affected by audit planning, fieldwork audit, and the competence of the auditor team. Meanwhile, the reporting of audit results, the follow-up action of the audit results, and the independence of the auditor team do not affect the internal audit quality at the General inspectorate of the Ministry of Finance.

Factors Influencing the Quality of Financial Audit

Oradea Journal of Business and Economics, 2019

Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the quality of audit services both for investors and for professional accountants and auditors. Audit quality factors can be structured according to several criteria and were represented by the size of the auditor, rotation, duration of the contract, types of services provided. In order to support this hypothesis, the correlation between the variables was tested on the basis of a sample of seven companies listed at Bucharest Stock Exchange in the energy field and utilities included in index BET, for period 2013 - 2018. The data was collected from the annual financial statements and reports issued by financial auditors. The results show that there is a correlation between variables, but of different intensities de...