Quality audit part one

Quality audit part one

Quality audit part one

Quality audit features

Audit quality guidelines consider quality to be related to several inherent and main features of auditing as follows:

*Importance:

How important is the subject being audited?

This criterion can be evaluated through the financial size of the audited unit and the effect that the unit’s performance has on the general society or on the main financial issues.

*Reliability:

Are the results and findings of the audit a correct reflection of the real conditions of the investigated subject?

Are all statements in the audit report or other reports based entirely on the data collected in the audit?

*Neutrality:

Has the audit been done fairly and without discrimination?

Has the auditor made her assessment and opinions based on that fact and correct analysis?

*Domain:

Has the audit engagement fully planned and implemented the elements required for a successful audit?

* Being on time:

Are the audit results presented at the right time when they are needed for making decisions or correcting management weaknesses?

*Clarity:

Is the auditor’s report clear and concise in presenting the results?

This includes ensuring that the scope, findings, and any recommendations are understandable to users who do not have sufficient knowledge of the issues raised.

*Performance:

Are the resources allocated to the audit reasonable considering the importance and complexity of the work?

* Effectiveness:

Are the findings, results and theories of the audited unit, the government and others, an appropriate response?

Therefore, audit institutions should use policies, systems and procedures that strengthen the aforementioned quality factors and in all audit stages, including work acceptance, work scheduling, planning, implementation, evaluation of findings, conclusions, Reporting, and audit proposals, implement quality controls.

Aspects of audit quality among users vary according to the level of involvement and their direct involvement in audits and the criteria for measuring audit quality (Guidelines for audit quality, 2004).

Demand for quality auditing

The demand for audit is justified in the reporting process

which is done under the conditions of conflict of interest, important economic consequences, complexity of economic activities and lack of direct access.

What audit adds to the reporting process.

It is related to the quality of reported information and the need of users to evaluate the quality of information before using it. (Shahrokhi and Mashaikh, 2016).

The conducted research shows that the demand for audit existed before the legal requirement.

As a result, it seems reasonable to claim that the economic role of auditing compared to the legal requirement is the driver of the demand for auditing work and the differentiation of audit quality.

Entering into the research about the theory of demand for audit quality comes from the fact that there is information asymmetry between company managers and investors.