||Recently, many cases of fraud and financial crisis have arisen everywhere around the world due to the defect of corporate governance, resulting in a severe decrease in investor confidence. Scandals about company managers cheating have also stirred serious doubts among the public about audit quality. Ordinary people know little about the complex functions of auditing and therefore have misguided expectations. Currently, the public only understands that high-quality auditing can help to prevent economic issues caused by the financial difficulties of a company or the market. Moreover, different results arise when this issue is discussed from different perspectives. This study begins by defining audit quality, and describing various factors that affect audit quality. Three key factors are analyzed— independence, professionalism, and institutional governance quality—and the analyses include the discussion of the 14 evaluation criteria. These evaluation criteria are further assessed by inviting professionals, including scholars, companies (clients) and CPA firms, to fill out a questionnaire to determine the extent to which each criterion influences audit quality. |
Using these questionnaires, and DMATEL and ANP methodologies, our results show that an accountant’s familiarity with the industry, audit recommendation quality, the importance of a client, the size of the accounting firm, and the accountant’s audit plan are the top five influential factors. Three of these top factors: the accountant’s familiarity with the industry, audit recommendation quality and the accountant’s audit plan, are concerned with the professional practice of accounting. Given this, professionalism can be seen as the major factor to influence independence and institutional governance quality, where the latter is less influential in terms of audit quality.
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