Audit Quality

2067 WordsMay 23, 20129 Pages
AUDIT QUALITY A BRIEF DISCUSSION REGARDING THE QUALITY OF ASSURANCE AND AUDIT Student ID: 1204335 Xiaoyu ZHENG AUDIT QUALITY A BR IEF D ISC US SI ON R EGAR D IN G THE QUAL IT Y OF A S SUR A N CE AN D A UD IT A INTRODUCTION uditing has inevitably become one of the essential activities in the current business world. It may be attributable to the fact that financial reports still remain the major criteria in evaluating the performance of the business. Audit quality refers to different denotations in various business sectors; hence in this paper deliberations of audit quality are limited to professional audit firms within the scheme of Australian Securities and Investments Commission (hereinafter ASIC). Due to the complexity…show more content…
2 AUDIT QUALITY However, it is not appropriate to neglect contributions from the APESB in assisting the assurance of audit quality. It is the fundamental flaw of the ethical standards of all types that hinders the full efficacy of ethical standards on the quality of auditing processes. Ethical standards still serve as dynamic supports to legal framework. Both the staffs from the audit firm and audit regulators are required to review auditing processes to compensate the imperfection of legal framework and code of ethics. 3 DUE CARE & PERFORMANCES As per discussed above, it is essential that due care and performances such as professional qualities and expertise from auditors themselves and staffs in the firm as well as the audit regulator ASIC are critical in the assurance of audit quality. According to Leung, Coram and Cooper, audit quality could be compromised due to pressures faced by the auditors (2011). They backed up such statement with stunning percentage of non-verifiable opinions in the auditing processes from both national accounting forms of 20%
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