Understanding audit quality
Understanding audit quality
Understanding audit quality
Quality improvement is the guarantee of survival and progress.
This issue, especially in competitive and free market-based systems, is well evident and undeniable.
Because customers and consumers always demand the best qualities.
In other words, neglecting the quality and improving it will lead any activity to stop and decay.
Monitorability always improves the quality of work.
On the other hand, the spread of this culture always keeps the environment in a sense of responsibility.
And the existence and presence of an audit organization with such characteristics in the field of economic and industrial activities will definitely promote the culture of accountability.
which is necessary for the health of the economy and industry in any country (Yaqub Nejad and Amiri, 2016).
The understanding of audit quality from the point of view of some researchers is as follows:
D’Angelo (1981) concludes that larger audit firms have less incentive for opportunistic behavior.
And hence, users’ perception of audit quality puts them in a better position.
Moreland (1995), in his research, showed that the requirements of the Securities and Exchange Commission for the world’s major audit institutions have led to a better understanding of high audit quality by users.
Lee Dang (2004) has stated in his research that users’ perceptions of audit quality represent the actual audit quality.
Among the conducted researches, most of this size variable has been used.
And it is assumed that large audit institutions have higher audit quality than smaller institutions.
Of course, the two main presuppositions of this issue (firstly, audit institutions have provided the same audit quality for all owners in all financial periods.
And secondly, the quality of all auditing institutions, big and small, is the same).
It is itself challenged.
(In his professional opinion, the auditor seeks to know the objective reality, which is usually impossible to achieve.
True belief is the awareness of objective reality.
It depends on the mental attitude of the believer as well as the existence of reality (Basic Auditing Statement, 1973).