Audit quality indicators: perceptions of junior-level auditors

Abstract

Purpose: In an effort to develop an audit quality (AQ) framework specific to the US audit market, the Public Company Accounting Oversight Board (PCAOB) recently issued a concept release proposing 28 audit quality indicators (AQIs) along three dimensions: audit professionals, audit process and audit results. Using AQIs initially proposed by the PCAOB, as well as AQIs suggested by prior literature, the authors solicit perceptions from junior-level (senior and staff) auditors to investigate the current state of practice along many of the AQIs relating to audit professionals and audit process. Design/methodology/approachIn the study, 78 junior-level auditors responded to the survey.

Quality Management Mechanism, Job Satisfaction and Performance Audit

“…The implementation of government auditing quality management mechanism is positively and statistically related with the identification of influential factors to improve performance audit. Therefore, the higher the implementation of government auditing quality management mechanism the more performance audit (Karapetrovic and Willborn, 1998;Cheng et al, 2001;Wang et al, 2007;Brown et al, 2016;Woodside et al, 2016). The H2 is supported.…”

“…The mean of each questionary item for the implementation of government auditing quality management mechanism is 4.75 ~ 5.28. The respondents appear to positively implement the quality management mechanism and the improve the quality of government audit Cheng et al, 2001;Wang et al, 2007;Brown et al, 2016).…”

“…The implementation of government auditing quality management mechanism is positively and significantly associated with job satisfaction of government auditor. The higher the implementation of government auditing quality management mechanism the more job satisfaction of government auditors Karapetrovic and Willborn, 1998;Cheng et al, 2001;Wang et al, 2007;Brown et al, 2016). Accordingly, there is support for H1.…”

“…The quality management of public audit includes organisation (auditing institution), people (auditor) and the auditing process (Karapetrovic and Willborn, 1998;Brown et al, 2016). Based on "Auditing Quality Management Mechanism" from Office of the Auditor General of Canada, Taiwanese government established "the quality management structure of auditing institutions".…”

“…The implementation efficiency of quality management mechanism crucially influences the organisational performance (Karapetrovic and Willborn, 1998;Cheng et al, 2001;Wang et al, 2007;Brown et al, 2016;Woodside et al, 2016). The essential factors to affect the auditing execution of government performance include the staff capacity, organisational commitment, self-condition of policy, resource input of policy and target group support (Brazelay, 1996;Woodside et al, 2016).…”