A structural model for audit quality

Abstract EN

Audit quality had been studied using different approaches but understudied using a structural model.

This study hypothesizes a causal relationship between audit quality, auditor independence, audit mission characteristics and auditor's qualifications and abilities.

Data were collected using an electronic Email survey, sent to external auditors (n = 52).

Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the study hypotheses.

The results show tow positive significant relationships, first, between audit mission characteristics and auditor independence, second, between auditor's qualifications and abilities and audit quality, while the model fails to establish a significant relationship between auditor independence and audit quality.

The study suggests that audit mission characteristics play a major role to guarantee the independence of external auditors, and audit quality can be achieved by enhancing auditor's qualifications and abilities.