The Impact of Auditor Integrity to Audit Quality: an Exploratory Studies from the Middle East

Hubais, Abdullah Said Ahmed; Kadir, Mohd Rizuan Abdul; Bilal, Zaroug Osman; Alam, Mohammad Nurul

doi:10.26668/businessreview/2023.v8i1.1254

Cited by 6 publications

(4 citation statements)

References 38 publications

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“…According to DeAngelo (1981), audit quality is defined as the probability of an auditor finding a fraud or error in a financial statement and the probability of reporting a found error, which is defined by the auditor's professional ability, audit effort, and auditor independence. More recently, Audit quality is defined as the technique used by auditors to detect false statements and improve the efficiency of the reporting system (Hubais et al, 2023).…”

Section: Activity Of Audit Committee and Audit Qualitymentioning

confidence: 99%

Does Quality of Audit Committee Enhance Audit Quality?

An¹

2023

J. Professional Business Review

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Purpose: This study investigates whether quality of audit committee affects audit quality of Korean listed firms using panel data during the period 2008 to 2018. Theoretical framework: Recent studies show that characteristics of audit committees such as size, activity, and expertise have a significant impact on the monitoring of the financial reporting process (He and Yang, 2014; Asiriuwa et al. 2018). Therefore, it is necessary to carry out systematic empirical studies to understand the effectiveness of the audit committee from various perspectives. Design/methodology/approach: The quality of audit committee is classified into four categories: 1) activity, 2) independence, 3) expertise, and 4) the presence of female audit committee member. Audit quality is measured by auditor size and accruals quality. Findings: This study finds that activity and expertise of audit committee enhance audit quality whereas independence of audit committee does not affect audit quality. The female audit committee member partially enhances audit quality. Research, Practical & Social implications: This study suggests that the high quality of the audit committee enhances the audit quality and increases the accounting transparency of the firm. Originality/value: The empirical results of this study suggest that firm should concentrate the optimal composition of the audit committee, not simply the establishment of the audit committee.

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Section: Activity Of Audit Committee and Audit Qualitymentioning

confidence: 99%

Does Quality of Audit Committee Enhance Audit Quality?

An¹

2023

J. Professional Business Review

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“…Auditor integrity refers to the impartiality and objectivity of an auditor in conducting an audit, free from conflicts of interest and bias. Hubais et al (2023) added that auditor integrity involves a broad concept of morally correct behavior, including honesty, fair dealing, and honesty during the audit process. Auditor integrity is critical to ensuring the quality and reliability of financial reporting, protecting investors, promoting transparency and accountability, and maintaining public trust in the financial reporting process.…”

Section: Literature Reviewmentioning

confidence: 99%

- Auditor’s Integrity: The Balance of Roles

Fibriani

2023

JEA17

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Auditor integrity is very important to ensure audit quality. However, auditor integrity can be influenced by pressure from superiors such as role conflict, role ambiguity, and role overload. This study aims to examine the effect of the three role pressure factors on auditor integrity and performance. This quantitative research with a causality approach was conducted through Google Form by involving staff auditors who work for 52 KAPs in Surabaya. Then the primary data was analyzed using SmartPLS. The results show that role conflict and role ambiguity have a significant negative effect on auditor integrity, while role overload has a positive but insignificant effect. Auditor integrity significantly negatively mediates the effect of role conflict and role ambiguity on auditor performance, and significantly positively mediates the effect of role overload on auditor performance. This study concludes that role pressure can threaten auditor integrity, so steps need to be taken to reduce pressure so that auditors can maintain their integrity. Keywords: Role Conflict, Role Ambiguity, Role Overload, Auditor Integrity, Auditor Performance.

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“…In recent years, the topic of auditing efficiency and efficacy has been increasingly discussed (Bader and Khoshnaw, 2023;Hubais et al, 2023;Sullivan et al, 1985 Willis, 1985;McDaniel, 1990;and Messier, 1995). In general, audit professionals tend to define efficiency as the fulfilment of the goals set for the auditing work in the shortest possible period of time (Hollingshead, 1996).…”

Section: Theoretical Referentialmentioning

confidence: 99%

Why Auditors Increasingly Rely on Analytical Procedures: An Empirical Approach in Portugal

Pinho,

Dos Santos,

Martins

2023

J. Professional Business Review

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Purpose: The study aims to reflect on the reasons behind the increasing use of analytical procedures during evidence collection as a way of corroborating the claims made in financial statements. Theoretical framework: The study develops the problem arising from more complex financial information due to more complex transactions within market players, and develops all the theoretical approach to auditing and the analytical procedures ruled in ISA 520. Design/methodology/approach: A relevant sample was taken from the auditing market in Portugal, and thus principal component analysis was develop in order to conclude why auditors tend to rely increasingly in analytical procedures, as a source of evidence in auditing approaches. Findings: The conclusions of this empirical study point to the fact that, in general terms, the increasing use of analytical procedures stems from a risk-based approach to auditing together with reasons that have to do with time pressure and the need to carry out more efficient audits with fewer substantive detail tests as well as improvements in the interpretation of norms applicable to auditing work. Research, Practical & Social implications: Comprehensive conclusions identify the increasing usage and confidence on analytical procedures by auditors, pointing out objective reasons the justify that fact. Originality/value: There are several investigations about risk based approach in auditing, but no actual study was found that explores the reasons behind the increasing usage of such procedures, within the International Standards on Auditing (ISA’s). The study thus provides evidence about reliability and relevance of such procedures.

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The Impact of Auditor Integrity to Audit Quality: an Exploratory Studies from the Middle East

Cited by 6 publications

References 38 publications

Does Quality of Audit Committee Enhance Audit Quality?

Does Quality of Audit Committee Enhance Audit Quality?

- Auditor’s Integrity: The Balance of Roles

Why Auditors Increasingly Rely on Analytical Procedures: An Empirical Approach in Portugal

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