Audit Team Characteristics, and External Environment Audit Factors: Effects on Audit Quality in Libya

Hussein, Fuad Elmahedi; Hanefah, Mustafa Mohd; Endaya, Khaled Ali

doi:10.36349/easjebm.2020.v03i10.002

Cited by 4 publications

(1 citation statement)

References 22 publications

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“…In many developing countries, such as Libya, audit quality depends a lot on practical experience and how professionals behave (Hussein et al, 2020). When auditors are dedicated to good teamwork, it usually leads to better audit quality.…”

Section: Auditor Independence Implications For Auditor Performancementioning

confidence: 99%

Auditor rotation impact on auditor independence and its implication on auditor performance

Suhayati,

Dilyard

2024

JEECAR

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This study aims to determine how much auditor rotation affect auditor independence and its implications for auditor performance. The method used in this study are descriptive and verification methods with path analysis, data processed using the SPSS program. The results of this study indicate Auditor Rotation Affect Auditor Independence and Auditor Independence Has Implications for Auditor Performance, with the reason, if the auditor rotation is carried out consistently, the level of auditor independence is high so that the auditor's performance is optimal.. The higher the independence, the better the auditor's performance. People are increasingly trusting to use the services of a public accounting firm. Independence is the backbone of the auditor's profession, auditor rotation in many countries is important to implement such as in Jordan, Libya and other developing countries. Auditor performance is a tool to measure auditor performance, which begins with instilling attitudes that are not controlled by other parties, one of which is through audit0r rotation, auditor rotation is needed as a basis to prevent a special relationship between management and the auditor as a result of long assignments.

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Section: Auditor Independence Implications For Auditor Performancementioning

confidence: 99%

Auditor rotation impact on auditor independence and its implication on auditor performance

Suhayati,

Dilyard

2024

JEECAR

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The role of culture on the adoption of International Standards on Auditing in the developing countries: An institutional perspective

Eltweri

Faccia

Cavaliere

2020

JGR

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This paper examines the role played by the culture on the adoption of the International Standards on Auditing (referred to as ISA henceforth) that intends to stimulate establishing an efficient auditing regime in Libyan auditing practice. The current research conducted interviews with 43 participants across five Libyan key stakeholders in the auditing environment. The methodology employed was in line with the relevant literature and it serves to achieve the aims and to answer the questions of this study (Ménacère, 2016). Institutional isomorphism produces a greater impact on Libya accounting and auditing practices (Phillips & Jiao, 2016). Therefore, this study examines that the cultural factor systematically and consistently assesses the level of ISA adoption, commitment, and associated harmonisation. Given the growing interest in harmonising the auditing practice, not only by scholars but also by policy and decision-makers, this study is aimed at contributing to improve and develop an under-researched topic in Africa, by expanding the literature on the importance of harmonising auditing practices. It also provides fresh insights into auditing practices in a politically unstable country. Awareness is also raised about other relevant drivers of adopting ISA.

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Non-Audit Services (NAS) and Auditor Independence (AI): Moderating Role of Regulatory Environment

Eke,

Onuoha,

Isichei

et al. 2024

jlsdgr

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Objectives: This study aimed to examine the influence of non-audit services (NAS) on audit independence (AI) among non-financial companies listed on the Nigerian Stock Exchange (NSE). Specifically, it investigated the relationship between NAS fees and AI, with a focus on how regulatory quality moderates this relationship. Theoretical Framework: The study is grounded in agency theory, which suggests that conflicts of interest may arise when auditors provide NAS, potentially compromising their independence. The research also explores the role of regulatory quality in mitigating such conflicts, contributing to the broader understanding of corporate governance in emerging markets. Method: An ex-post facto research design was employed, analysing secondary data from 280 firm-year observations across 20 companies in nine industry groups on the NSE over a 15-year period (2006-2020). Audit independence was proxied by discretionary accruals, while NAS was measured using the NAS fee ratio (NFR) and the natural logarithm of NAS fees (LNNF). The hypotheses were tested using Autoregressive Distributed Lag (ARDL) models with the aid of Stata v15. Results and Discussion: The findings reveal that higher NAS fees (LNNF) are significantly associated with reduced audit independence, as indicated by increased discretionary accruals. However, this negative impact is moderated by the quality of the regulatory framework, which helps preserve AI. Contrary to initial expectations, the NAS fees ratio (NFR) was found to be positively associated with discretionary accruals, further emphasizing the critical role of regulatory quality in safeguarding audit independence. Research Implications: The study underscores the importance of robust regulatory frameworks in maintaining audit independence in the presence of NAS. It offers practical insights for policymakers and regulators to enhance corporate governance and financial reporting integrity in Nigeria. Originality/Value: This research contributes to the literature by providing empirical evidence from an emerging market, demonstrating the significance of regulatory quality in moderating the relationship between NAS and audit independence. It offers valuable guidance for policymakers, regulators, and practitioners aiming to strengthen corporate governance practices.

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Audit Team Characteristics, and External Environment Audit Factors: Effects on Audit Quality in Libya

Cited by 4 publications

References 22 publications

Auditor rotation impact on auditor independence and its implication on auditor performance

Auditor rotation impact on auditor independence and its implication on auditor performance

The role of culture on the adoption of International Standards on Auditing in the developing countries: An institutional perspective

Non-Audit Services (NAS) and Auditor Independence (AI): Moderating Role of Regulatory Environment

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