Essays on The Main Drivers of Audit Quality Assignment

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The paper "The Main Drivers of Audit Quality" is a great example of an assignment o finance and accounting. Audit quality is a process that entails conveying independent and appropriate professional viewpoints on financial statements that are to be backed by objective judgments and necessary evidence. This is attained by acting in accordance with audit and ethical requirements in order to enhance objectivity, integrity, and professional competence when preparing financial statements (Bank for International Settlements, 2008). Question 2 The main drivers of audit quality The UKFRC came up with five drivers of audit quality which were also endorsed by the International Forum of Independent Audit Regulators (IFIAR), as drivers of audit quality that can be used within the international context (The Treasury, 2010). One of the drivers of audit quality is that of the internal culture within an audit firm.

According to the Financial Reporting Council (2008), the internal culture enhances audit quality by ensuring that audit quality is monitored across and within firms in order to encourage personal attributes that are necessary for audit quality. Also, the internal culture can facilitate the development of audit quality through giving support to partners as they exercise their personal judgment.

In addition, the internal culture can assist in creating an environment where achieving high quality is the first priority (Financial Reporting Council, 2008). The Australian Treasury holds the view that audit firms in the country usually perceive their internal culture as seriously essential in enhancing audit quality. The Treasury report (2010) further reveals that within the framework of the Australian regulation, there is basically a strong drive to develop a culture of excellence in terms of audit quality. Treasury report (2010) highlights that another way of enhancing a culture of excellence in audit quality is by getting the framework of Australian audit regulation to be in line with those of corresponding developments of regions such as the UK, the EU, and the US.

This entails initiating discussions with various stakeholders about whether they view the Corporations Act as being valuable or whether it should be amended to allow firms to publish their annual transparency reports on their websites, as it occurs in the Statutory Audit Directive and the Quality Control Reports (QCRs) of EU countries.

References

Australian Securities and Investments Commission (2011) Audit Inspection Program Public

Report for 2009�10, viewed 01/09/2011

published-29-June-2011.pdf>

Bank For International Settlements (2008) External Audit Quality and Banking Supervision.

Basel, viewed 01/09/2011 www.bis.org/publ/bcbs146.pdf

Financial Reporting Council *(2008) The Audit Quality Framework, viewed 01/09/2011

Institute of Chartered Accountants in Australia (2010) Annual Report on the Quality Review

Program for the Year Ended 30th June 2010, viewed 01/09/2011,

Leung P., Coram p., and Cooper B. (2011) Modern Auditing and Assurance Services 5th ed.

Wiley, Milton Qld. pp.131-144.

The Treasury (2010) Audit Quality in Australia: A Strategic Review Commonwealth of

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