Audit Quality Summary

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The quality of audit is assumed to be the market-assessed joint probability that a given auditor will both (A) discover a breach in the client’s accounting system; and (B) report the breach. The probability that a given auditor will discover a breach depends on the auditor’s technological capabilities, the audit procedures employed on a given audit, the extent of sampling and so on. Moreover, the conditional probability of reporting a discovered breach is a measure of an auditor’s independence from a given client. Thus, DeAnglo’s (1981) defined audit quality as an increasing function of an auditor’s ability to detect accounting misstatements and auditor independence as assessed by the market. Her definition refers to “market-assessed” or perceived…show more content…
The researcher acknowledged that since the purpose of an audit is to provide assurance on financial statements, audit quality is the probability that financial statements contain no material misstatements. In fact, this definition uses the results of the audit, that is, reliability of audited financial statements to reflect audit quality (Ahmad, 2014).
Critically, auditing process provides necessary information about a wide variety of related subjects that are needed by the different categories in their capacities as the financial books' users, according to which proper decisions are taken. The importance of both studying and assessing the role of this profession has recently been increased, particularly with regard to the quality of information it provides for the different users.
Nevertheless, the need for such a vital process (i.e Auditing) is mainly attributed to the need for securing accuracy and safety of the financial data and information, upon which all users of the financial (accounts) books depend in their decision-making processes. On the other hand and with regard to the fact that auditing reflects both accuracy and credibility on the financial books, it also adds an advantage to the accounting data and information. Such an advantage is being expressed by both qualities alluded to the reliability of the informative content of the financial
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Some of the variables are linked with the auditor's character, while the others are all related to the auditing establishments and offices. It is worth mentioning here that some of those variables are closely connected with the different economical and business units which are considered to be the main objects of the profound auditing processes. The professional and scientific qualification of the accounts' auditor, his autonomous and neutrality in performing tasks, rules and moral obligations of the profession altogether considered to be, perhaps, the most important variables that are generally accepted by many positive thinkers, along with some other related issues by which the qualitative aspect of the auditing professional performance is greatly

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