An investigation of the credibility of and confidence in audit value: evidence from a developing country

Abstract

Purpose This study aims to investigate the factors that enhance the credibility of and confidence in audit value. Design/methodology/approach Data were collected from 254 institutional investors through a questionnaire survey and were analyzed using partial least squares structural equation modelling (PLS-SEM). Findings The findings reveal that the two influential predictors of enhanced credibility and confidence are perceived auditor independence and improved auditor communication. Factors related to auditor–client affiliation, such as restrictions on providing non-audit services, mandatory auditor rotation and the presence of effective audit committees, are identified as creating the perceived independence. Improved auditor communication is linked with improving the audit report and ensuring audit education, thus creating more sophisticated users who better understand the scope and purpose of an audit. Furthermore, independent audit oversight acts as a moderator in the relationship between perceived auditor independence, improved auditor communication and enhanced credibility. Enhanced credibility can lead to greater confidence in audit value. Originality/value In the wake of the global financial crisis and loss of confidence in the role of auditors, this study investigates the factors that can enhance the credibility of and confidence in audit value, especially in a non-Anglo-American setting. This study is unique in terms of methodological development, as it uses a higher-order Type II reflective–formative model using PLS-SEM.

The Relationship between Interpreting Anxiety and Learning Motivation Assisted by Long Short-Term Memory Neural Network Algorithms

“…After collecting data, invalid questionnaires that do not meet the requirements will be removed. Calculate the effective rate of questionnaire collection [31]. Afterwards, the data will be processed, correlation analysis will be conducted, and descriptive statistics will be conducted.…”

Investigating the conditions under which internal auditing is carried out in selected local governments in the Central Region of Ghana

“…Most studies on internal auditing focus on the effectiveness of internal auditing, effectiveness of the internal audit functions, and the relationship between internal auditing and performance of organisations (e.g. Cohen and Sayag, 2010; Abu-Azza, 2012; Badara, 2012; Akther and Xu, 2021), thereby creating a research gap on the conditions under which internal auditing is carried out. This study attempts to fill the gap focussing on selected local governments in Ghana.…”