Importance Of Audit Quality

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Introduction

Auditors play an important role to promote the public interest by providing accurate and independent audit reports about the financial report (Public Company Accounting Oversight Board, 2016). However, scandals like Enron and WorldCorn have cause public doubt and distrust the auditor and audit quality. The public thinks only auditors contribute to the outcome of auditing. However, professions believe auditor not only responsible for audit quality but also many stakeholders affect audit quality. This raises a question about how to explain the profession views is correct.

To answer this question it is important to understand what audit quality actually means and the demanding improvements in audit quality first. DeAngelo (1981) …show more content…

The first section discusses how stakeholders influence the skill, experiences and independent on the inputs of audit quality. The second section argues stakeholders affect audit quality in the process of audit quality. Then, third section will describe the output of audit quality is impacted by stakeholders. At last, this essay will give a conclusion about stakeholders are responsible for auditing …show more content…

These inputs are influenced by different stakeholders by several ways. At first, Regulators create a good ethical environment on audit job. An aim to a good audit quality and restoring public confidence, regulators issue ethical standards as the fundamental principle to assurance practitioners. New Zealand Auditing and Assurance Standards Board (XRB) issued Integrity, objectivity, professional competence and due care, professional behaviour as the fundamental principles to all assurance practitioners. The important of the code of ethics are which improve decision making and judgment of auditor. (Pflugrath, Martinov & Chen). New Zealand Institute of Chartered Accountants (NZICA) also requires their members equip the code of ethics to ensure they have professional conduct in auditing job (Chartered Accountants Australia and New Zealand, 2016). These principles ensuring auditors is morally accountable to their clients (Gay & Simnett, 2015). Professional account organizations play an important role to ensure auditor have qualified skill and experience in the input of audit quality. High barriers to entry into the profession body aim to select good members who have high level of skill and who complement the education requirement (Davey & Hooper, 2013). For instance, people have to complete academic study and professional programmer with practical experiences for becoming a member of Chartered

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