Initiating the Introduction of Audit Quality Indicators in North Macedonia, Slovenia and Estonia: A Qualitative Study on Established Audit Quality Oversight Practices
DOI:
https://doi.org/10.46763/Keywords:
audit, audit quality, Audit Quality Factors, Audit Quality Indicators, Audit Quality OversightAbstract
Ensuring reliable financial reporting hinges on high-quality audits. However, the effective
measurement of audit quality, due to the complexity of its key factors, presents a
significant challenge, making it difficult to assess and improve audit practices. This study
dives into this issue by exploring the audit quality oversight practices in North Macedonia,
Slovenia and Estonia. The study applies the qualitative research approach, utilising
existing literature, national audit regulations and aggregated inspection reports from these
three countries. The core idea is to see how reported audit quality deficiencies could serve
as a foundation for developing appropriate indicators to better measure audit quality.
Our analysis revealed that audit quality deficiencies, as documented in the aggregated
inspection reports, can indeed inform the creation of audit quality indicators that can
facilitate the assessment of audit quality by the key audit quality oversight stakeholders,
academicians, scholars and the general public, as users of audited financial statements.
Further, these indicators hold the potential to enhance audit documentation and
streamline the measurement of audit quality. Yet, our findings also underscore notable
differences in audit regulatory frameworks and oversight practices across these countries,
highlighting a clear need for future quantitative research to fully address these
complexities. Ultimately, this research significantly advances the understanding of audit
quality measurement. By proposing the use of reported audit quality deficiencies to
develop audit quality indicators, the study lays a crucial groundwork for future quantitative
research in the area of measuring audit quality. These future studies can then refine these
audit quality indicators, leading to more effective audit quality oversight practices and,
ultimately, more reliable financial reporting.
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