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Audit Quality and Several of Its Determinants

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  • Ionela-Corina CHERSAN

    ("Alexandru Ioan Cuza" University of Iasi, Romania)

Abstract

The objective of this article is to identify the relationship between the quality of services provided by the financial auditors and its determinants, among which the initial and continuing training of auditors occupies an important place as long as their authorization depends on achieving an adequate level of education and professional training. It has been taken into account the fact that the purpose of public interest entities has become global, and the ethical and professional challenges to which auditors are exposed are becoming more and more difficult to manage. To this end, it has set out from the initial and continuous education and training requirements recommended by the International Education Standards Board and there have been corroborated the obtained information with the results of other studies addressing the current challenges faced by the financial auditors (more and more regulations, changes in the financial and non-financial reporting, technology development and increase of business complexity), while trying to answer the question regarding the effect of these challenges on the audit quality. The analysis was a qualitative one that pursued the researchers' concerns about the audit quality in order to identify the best ways to improve it. The article has a direct practical use both for the financial auditor organizations and the statutory audit oversight authorities to guide the continuing professional training, as well as for the financial auditors and audit firms which can better manage their work in order to increase the quality of the services they offer.

Suggested Citation

  • Ionela-Corina CHERSAN, 2019. "Audit Quality and Several of Its Determinants," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(153), pages 1-93.
    • Handle: RePEc:aud:audfin:v:17:y:2019:i:153:p:93
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    References listed on IDEAS

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    1. Gerald J. Lobo & Luc Paugam & Dana Zhang & Jean François Casta, 2017. "The Effect of Joint Auditor Pair Composition on Audit Quality: Evidence from Impairment Tests," Contemporary Accounting Research, John Wiley & Sons, vol. 34(1), pages 118-153, March.
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    6. Cristina Fuentes & Manuel Illueca & Maria Pucheta-Martinez, 2015. "External investigations and disciplinary sanctions against auditors: the impact on audit quality," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(3), pages 313-347, August.
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    8. Timothy B. Bell & Monika Causholli & W. Robert Knechel, 2015. "Audit Firm Tenure, Non‐Audit Services, and Internal Assessments of Audit Quality," Journal of Accounting Research, Wiley Blackwell, vol. 53(3), pages 461-509, June.
    9. Veena L. Brown & Jodi L. Gissel & Daniel Gordon Neely, 2016. "Audit quality indicators: perceptions of junior-level auditors," Managerial Auditing Journal, Emerald Group Publishing, vol. 31(8/9), pages 949-980, September.
    10. Colbert, Gary & Murray, Dennis, 1999. "State Accountancy Regulations, Audit Firm Size, and Auditor Quality: An Empirical Investigation," Journal of Regulatory Economics, Springer, vol. 16(3), pages 267-285, November.
    11. Ammar Abid & Muhammad Shaique & Muhammad Anwar ul Haq, 2018. "Do Big Four Auditors Always Provide Higher Audit Quality? Evidence from Pakistan," IJFS, MDPI, vol. 6(2), pages 1-22, June.
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    Cited by:

    1. Valentin-Marian Antohi & Monica Laura Zlati & Romeo Victor Ionescu & Mihaela Neculita & Raluca Rusu & Aurelian Constantin, 2020. "Attracting European Funds in the Romanian Economy and Leverage Points for Securing their Sustainable Management: A Critical Auditing Analysis," Sustainability, MDPI, vol. 12(13), pages 1-27, July.

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    More about this item

    Keywords

    audit quality; education; professional development; the International Education Standards;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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