IDEAS home Printed from https://ideas.repec.org/a/taf/euract/v7y1998i1p65-82.html
   My bibliography  Save this article

Quality dimensions in external audit services- an external user perspective

Author

Listed:
  • Bent Warming-Rasmussen
  • Lars Jensen

Abstract

A particular characteristic of auditing is that it is aimed at a heterogeneous group of stakeholders with occasionally diverging interests. This makes it even more relevant, though complicated, to determine exactly what users regard as quality. Based on empirical research, this paper investigates how two external user groups (shareholders and financial journalists) perceive audit quality, and analyses whether managing directors (preparers) and public accountants (auditors) evaluate the salient quality attributes differently. The overall results are as follows. (1) External users tend to perceive audit quality attributes as attributes that also inspire confidence in the auditor. (2) A number of different quality attributes can be summarized under six main quality dimensions. These dimensions mainly concern moral and ethical aspects. (3) The four groups of respondents (shareholders, financial journalists, managing directors and public accountants) assign significantly different values to these quality dimensions.

Suggested Citation

  • Bent Warming-Rasmussen & Lars Jensen, 1998. "Quality dimensions in external audit services- an external user perspective," European Accounting Review, Taylor & Francis Journals, vol. 7(1), pages 65-82.
    • Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:65-82
    DOI: 10.1080/096381898336583
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336583
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/096381898336583?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wilcox, Kirkland A. & Smith, Charles H., 1977. "Role discrepancies and the auditor-client relationship," Accounting, Organizations and Society, Elsevier, vol. 2(1), pages 81-97, January.
    2. Craswell, Allen T. & Francis, Jere R. & Taylor, Stephen L., 1995. "Auditor brand name reputations and industry specializations," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 297-322, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Carassus & Khaled Albouaini & Marie Caussimont, 2013. "Une analyse de l'Audit Expectation Gap dans le contexte français," Post-Print hal-02432110, HAL.
    2. Olivier Herrbach, 2001. "Audit quality, auditor behaviour and the psychological contract," European Accounting Review, Taylor & Francis Journals, vol. 10(4), pages 787-802.
    3. Olivier Herrbach, 1999. "Qualité et réduction de qualité en audit financier : le comportement des collaborateurs de cabinets," Post-Print halshs-00587761, HAL.
    4. Alan Kilgore & Renee Radich & Graeme Harrison, 2011. "The Relative Importance of Audit Quality Attributes," Australian Accounting Review, CPA Australia, vol. 21(3), pages 253-265, September.
    5. Beattie, Vivien & Fearnley, Stella & Hines, Tony, 2010. "Factors Affecting Audit Quality in the 2007 UK Regulatory Environment: Perceptions of Chief Financial Officers, Audit Committee Chairs and Audit Engagement Partners," SIRE Discussion Papers 2012-29, Scottish Institute for Research in Economics (SIRE).
    6. Emna Ben Saad & Cédric Lesage, 2009. "Perception De L'Indépendance De L'Auditeur : Analyse Par La Théorie D'Attribution," Post-Print halshs-00460618, HAL.
    7. Gultom, Juan Barus & Murwaningsari, Etty & Umar, Haryono & Mayangsari, Sekar, 2021. "Reciprocal Use of Artificial Intelligence in Audit Assignments," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 11(1), pages 9-20.
    8. Angus Duff, 2009. "Measuring audit quality in an era of change: An empirical investigation of UK audit market stakeholders in 2002 and 2005," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(5), pages 400-422, May.
    9. Tansey, R. & Carroll, Ray F. & Jun Lin, Z., 2001. "On measuring cost of quality dimensions: An exploratory study in the People's Republic of China," International Business Review, Elsevier, vol. 10(2), pages 175-195, April.
    10. X. Walthoff-Borm & L. Chalmet, 2013. "Behind closed doors: the potential of lean management in safety audit services," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/838, Ghent University, Faculty of Economics and Business Administration.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laurence Kranich & Andrés Perea & Hans Peters, 2005. "Core Concepts For Dynamic Tu Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 43-61.
    2. Kanagaretnam, Kiridaran & Krishnan, Gopal V. & Lobo, Gerald J., 2009. "Is the market valuation of banks' loan loss provision conditional on auditor reputation?," Journal of Banking & Finance, Elsevier, vol. 33(6), pages 1039-1047, June.
    3. Chang, Yu-Shan & Chiang, Chia-Yu & Liu, Li-Lin (Sunny) & Xie, Xinmei (Lucy), 2019. "Audit partner independence and business affiliation: evidence from Taiwan," Advances in accounting, Elsevier, vol. 46(C), pages 1-1.
    4. Nurul Nazlia Jamil, 2020. "The Power of Political Connections: Review on the Impacts of Audit Committee and Corporate Governance," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(1), pages 333347-3333, December.
    5. Astrid Rudyanto, 2017. "Audit Firm Reputation versus Auditor Capability: Their Effect on Audit Quality in Indonesia," GATR Journals afr147, Global Academy of Training and Research (GATR) Enterprise.
    6. Hye‐Jeong Nam, 2018. "The Impact of Mandatory IFRS Transition on Audit Effort and Audit Fees: Evidence from Korea," Australian Accounting Review, CPA Australia, vol. 28(4), pages 512-524, December.
    7. Herings, P.J.J. & Kubler, F., 2000. "Computing equilibria in finance economies," Research Memorandum 022, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    8. Jinghui Sun & Liuchuang Li & Baolei Qi, 2022. "Financial statement comparability and audit pricing," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(5), pages 4631-4661, December.
    9. James Ross Booth & Lena Chua Booth & Daniel Deli, 2012. "Managerial Incentives and Audit Fees: Evidence from the Mutual Fund Industry," Accounting and Finance Research, Sciedu Press, vol. 1(1), pages 1-76, May.
    10. Brennan, Niamh & Kelly, John, 2007. "A study of whistleblowing among trainee auditors," The British Accounting Review, Elsevier, vol. 39(1), pages 61-87.
    11. Angela Hecimovic & Nonna Martinov-Bennie, 2011. "The Differential Impact of the Force of Law Australian Auditing Standards," Australian Accounting Review, CPA Australia, vol. 21(2), pages 183-192, June.
    12. Ray Ball, 2009. "Market and Political/Regulatory Perspectives on the Recent Accounting Scandals," Journal of Accounting Research, Wiley Blackwell, vol. 47(2), pages 277-323, May.
    13. Sherry Fang Li & Sherry Fang Li, 2020. "Cost Of Debt And Auditor Choice," Accounting & Taxation, The Institute for Business and Finance Research, vol. 12(1), pages 35-44.
    14. Chang, Hsihui & Choy, Hiu Lam & Cooper, William W. & Ruefli, Timothy W., 2009. "Using Malmquist Indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes-Oxley Act," Omega, Elsevier, vol. 37(5), pages 951-960, October.
    15. Andrew B. Jackson & Michael Moldrich & Peter Roebuck, 2008. "Mandatory audit firm rotation and audit quality," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(5), pages 420-437, May.
    16. Rita Lamboglia & Daniela Mancini, 2021. "The relationship between auditors’ human capital attributes and the assessment of the control environment," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1211-1239, December.
    17. Benoît Pigé, 2000. "Audit quality and Corporate governance : an analysis of French audit regulations [Qualité de l'audit et gouvernement d'entreprise : le rôle et les limites de la concurrence sur le marché de l'audit," Post-Print halshs-03425760, HAL.
    18. Wouter Dutillieux & Donald Stokes & Marleen Willekens & Gary Monroe, 2013. "Strategic pricing by Big 4 audit firms in private client segments," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(4), pages 961-994, December.
    19. Duellman, Scott & Hurwitz, Helen & Sun, Yan, 2015. "Managerial overconfidence and audit fees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 11(2), pages 148-165.
    20. van Lent, L.A.G.M., 1996. "The Economics of an Audit Frm : The Case of KPMG in the Netherlands," Other publications TiSEM 415a66c3-7ad4-439e-9c37-8, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:7:y:1998:i:1:p:65-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REAR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.