Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on <i>PCAOB Concept Release on Audit Quality Indicators,</i> No. 2015-005, July 1, 2015

Rezaee, Zabihollah; Abernathy, John L.; Causholli, Monika; Michas, Paul N.; Roush, Pamela B.; Rowe, Stephen P.; Velury, Uma

doi:10.2308/ciia-51316

Cited by 8 publications

(3 citation statements)

References 64 publications

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“…Blay et al (2019) defined two fundamental principles in the auditing profession: responsibility and honesty, and they utilised both to assess an individual's potential for moral reasoning in auditing. Notably, trust in the audited financial statements can be improved when the auditor concentrates on their core values of competence, integrity, objectivity, independence, and AQ (Rezaee et al, 2016). According to Knechel et al (2013) and Parsimin et al (2023), ethical and moral thinking are personal traits of auditors that, when combined with professional skepticism, lead to higher AQ.…”

Section: Auditor Ethicsmentioning

confidence: 99%

“…Auditor competence is the main factor in the audit input (Rezaee et al, 2016;Dickins et al, 2018) and refers to the auditor's capability to perform tasks seriously and in accordance with professional standards (Abbott et al, 2016). A thorough understanding of the client's operations and clientspecific knowledge are necessary for successful audits (Ball et al, 2015).…”

Section: Auditor Competencementioning

confidence: 99%

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Factors Influencing the Audit Quality of the Municipalities

Rabaiah,

Mohd Hanefah,

Masruki

et al. 2024

JMIFR

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The study aims to analyze the Audit Quality (AQ) factors that were perceived to be necessary by the accountants and internal auditors in municipalities of Palestine. A survey of 309 accountants and internal auditors from 155 Palestinian municipalities was conducted. The questionnaire data was statistically analyzed using Smart PLS3 software. The study discovered that auditor ethics, independence, and competence were the most significant elements in determining AQ. Meanwhile, Internal Auditing (IA), Accounting Basis (AB), and the Laws and Regulations (LR) have a moderate effect. However, the least crucial factors were Audit Fees (AF) and Audit Firm Size (AFS). The study is limited by the survey questionnaire method’s general limitations and the perceptions of accountants and internal auditors. It offers evidence on AQ from Palestine, helps the audit firms distinguish their marketing and service delivery strategies, and understands the AQ aspects sought by those clients. Moreover, the study provides the municipal councils and the regulators of the municipalities with greater knowledge on how to select the best auditors and maintain internal control measures, notably IA and the use of the accrual basis in accounting procedures. Since the findings are generally consistent with previous studies, more emphasis can be placed on the effectiveness of municipal internal control.

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Section: Auditor Ethicsmentioning

confidence: 99%

Section: Auditor Competencementioning

confidence: 99%

Factors Influencing the Audit Quality of the Municipalities

Rabaiah,

Mohd Hanefah,

Masruki

et al. 2024

JMIFR

View full text Add to dashboard Cite

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“…Empirical and experimental research echoes that notion and provides evidence for the inferior quality delivered during the busy season (Czerney et al , 2019; Christensen et al , 2021). The PCAOB’s efforts to identify audit quality indicators include partner and staff utilization [8], and recent discussion is specifically focused on the busy season workload (Rezaee et al , 2016 pg. C19).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Office level contagion: impact of a non-timely filing by a major busy season client

Skomra

Sellers

Skomra

2023

MAJ

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Purpose This study aims to investigate the busy season contagion effects on other clients of the Big 4 auditor’s local office associated with the non-timely (NT) filing(s) by large accelerated filer (LAF) client(s) of the office. Specifically, the authors examine the influence such events have on the audit quality and timeliness of other clients of that office. Design/methodology/approach Using panel data of annual NT filings of LAF clients between 2006 and 2019, the authors apply the ordinary least squares regression technique to model audit reporting lag (ARL) and the logistic regression technique to model the probability of restatements. Findings Controlling for audit firm, industry and year-fixed effects, the authors find that a LAF NT filing reduces audit quality and audit timeliness of other clients of the office, as measured by restatement risk and ARL. The impact on ARL is most pronounced on the medium and small clients within the office. The deteriorated audit quality is observed for medium clients. Research limitations/implications The results of this study have practical implications for auditors and regulators. They reveal the contagion effect in the auditor’s local office with the NT LAF client. The main limitation of the study is the lack of staffing utilization data to allow for drawing conclusions on causality. Originality/value To the best of the authors’ knowledge, this is the first study to document the contagion effect of NT filings of LAF clients conducted at the auditor’s local office level.

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