Noor Adwa Sulaiman, Suhaily Shahimi and Ranjit Kaur Nashtar Singh
University of Malaya

This study explores the concept and attributes of audit quality from the perspective of those responsible for audit services, namely auditors, as a key constituent group in the auditing system. The study surveyed two groups of external auditors (group 1- audit partners and managing partners and, group 2 - senior and junior auditors) to compare their perceptions of the people and audit process attributes for achieving audit quality. The study was conducted in the form of a survey, with data gathered via a questionnaire. The returned surveys yielded a 37% response rate. The findings suggest differences in views on concepts of audit quality by the two groups of auditors. Overall, the top five highest-rated attributes of audit quality reported to be most important in determining audit quality are: compliance with the International Standard Quality Control (ISCQ) 1, obtaining credible and sufficient audit evidence, technical expertise of the audit team, audit work meeting the audit firms’ quality standards, and competency of the audit team. Further analysis shows that the two groups of respondents have different views on attributes of audit quality. Group 1 perceived attributes of audit quality are related to the auditors’ assessment of risk and internal quality review procedures within the audit firm. In comparison, group 2 perceived auditors’ competency and compliance with relevant standards as indicators of audit quality. Public accounting firms might be interested in understanding such underlying differences so that efforts to improve audit quality could focus on the key attributes perceived to be important for high quality audit services. This study is significant for extending the literature on audit quality. It also provides useful input to public accounting firms for improving the quality of their audits.

KEYWORDS: Audit quality, perceptions, audit process, quality control review