The Audit Quality: A Systematic Review of Key Factors and Future Directions
https://doi.org/10.35974/isc.v11i3.3674
Keywords:
Independence, Regulatory Frameworks, Data Analytics, Audit MethodologiesAbstract
This study presents a systematic literature review on Audit Quality, focusing on its key determinants and the evolving dynamics within the audit profession. The problem addressed is the need for a comprehensive understanding of how various factors such as auditor independence, firm size, and regulatory frameworks influence audit quality, particularly in a rapidly changing business and technological environment. The research objective is to synthesize existing studies and identify gaps in the literature to provide direction for future research in the field. Using the Scopus database, we applied a systematic review process, including keyword searches and filtering criteria, to select relevant academic papers. The data were analyzed qualitatively to explore the trends, challenges, and advancements in audit quality research. Our findings reveal that while traditional factors such as auditor competence and regulatory impact remain crucial, there is a growing need to investigate the role of technological innovations, such as data analytics and artificial intelligence, in enhancing audit processes. Furthermore, gaps were identified in understanding how these innovations influence audit quality in practical settings. This review offers critical insights for both researchers and practitioners, highlighting the importance of integrating new technologies with traditional audit methods to enhance the effectiveness and reliability of audits.
Downloads
References
Abbott, L. J., Daugherty, B., Parker, S., & Peters, G. F. (2016). Internal audit quality and financial reporting quality: The joint importance of independence and competence. Journal of Accounting Research, 54(1), 3–40.
Ahmed, M. (2024). Nexus between public audit dimensions and audit quality. International Journal of Social Science & Entrepreneurship, 4(1), 57-70. https://doi.org/10.58661/ijsse.v4i1.237
Christensen, B. E., Glover, S. M., Omer, T. C., & Shelley, M. K. (2016). Understanding audit quality: Insights from audit professionals and investors. Contemporary Accounting Research, 33(4), 1648–1684.
DeFond, M., Erkens, D. H., & Zhang, J. (2017). Do client characteristics really drive the big N audit quality effect? New evidence from propensity score matching. Management Science, 63(11), 3628–3649.
Griffith, E. E., Hammersley, J. S., & Kadous, K. (2015). Audits of complex estimates as verification of management numbers: How institutional pressures shape practice. Contemporary Accounting Research, 32(3), 833–863.
Guan, Y., Su, L. N., Wu, D., & Yang, Z. (2016). Do school ties between auditors and client executives influence audit outcomes? Journal of Accounting and Economics, 61(2-3), 506–525.
Gutierrez, E., Minutti-Meza, M., Tatum, K. W., & Vulcheva, M. (2018). Consequences of adopting an expanded auditor’s report in the United Kingdom. Review of Accounting Studies, 23(4), 1543–1587.
He, X., Pittman, J. A., Rui, O. M., & Wu, D. (2017). Do social ties between external auditors and audit committee members affect audit quality? Accounting Review, 92(5), 61–87.
Indriaty, L. (2024). The analysis to determinants affecting on audit opinion: evidence from Indonesia. Jurnal Akuntansi, 28(2), 380-399. https://doi.org/10.24912/ja.v28i2.2146.
James, I. and Izien, O. (2014). Audit firm characteristics and audit quality in Nigeria. International Journal of Business and Economics Research, 3(5), 187. https://doi.org/10.11648/j.ijber.20140305.14
Kalabeke, W., Sadiq, M., & Keong, O. (2019). auditors tenure and financial reporting quality: evidence from a developing country. International Journal of Asian Social Science, 9(5), 335-341. https://doi.org/10.18488/journal.1.2019.95.335.341
Ke, B., Lennox, C. S., & Xin, Q. (2015). The effect of China's weak institutional environment on the quality of big 4 audits. Accounting Review, 90(4), 1591–1619.
Malsch, B., & Salterio, S. E. (2016). “Doing good field research”: Assessing the quality of audit field research. Auditing, 35(1), 1–22.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 11th International Scholars Conference
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright © 2024 ISC Committee.