Audit Quality in AustraliaAudit quality in the point of view of an auditor is about the delivering of an appropriate, independent profession opinion on financial statements as evidence and objectives. Credibility and ethics play a pivotal role in the financial report and independent assessment process as highlighted by the global financial crisis (Abdullatif and Al-Khadash, 2010, p. 214). The nature of the global financial crisis and scope of the indefinite economic conditions have affected most entities in various sectors of the economy. This has resulted to further complications, risks and doubts for auditors.
Treasury takes into consideration that the composition of it strategic review of audit quality provides an opportune to assess the meanings of the universal fiscal conflict on the quality of audit in Australia and on the performance of Australia’s review control system and function. 3 Companies will be inspected all situated in Australia. The files in the individual companies will be viewed (Bushman and Piotroski, 2006, p. 102). Keywords: Audit qualityObjectives/Aims1.To develop high quality external audits of financial reports. 2.To maintain and elevate the standard of conduct in the auditing profession. 3.To investigate improvements required that should comply with the Australian standards. 4.To inform the auditors where necessary. 5.To assess the effectiveness of the companies efforts in determining eligibility and auditing practice. MethodsAudit Inspection ProgramIt is in line with the methods and best practice standards that are adopted by inspection bodies in the key developed economies.
This was done by the ASIC that is an independent oversight regulator with statutory powers and is essential to the Australian system. ASIC investigated recent failures of the companies and future public assessment reports (Eilifsen and Willekens, 2008, p.
84). Professional Accounting Bodies Quality ReviewsThis was done by three professional accounting bodies. They enhance the audit inspection program that was conducted by ASIC. The principal appraisal companies were subjected only to an ASIC inspection, and a quality analysis was conducted by a professional accounting body. Auditor Independence FunctionIf there is any sequence to improve the work of the firms in relation to auditor independence so as to eliminate any duplicated effort. Audit Firm Arrangements and ProcessesThe Culture within the FirmIt was viewed that the companies considered their local culture relevant to the relation to the audit quality.
This was viewed with the ASIC’s auditor inspection program, the observation, conclusions and reports that emphasized on professional judgment within the requirements of the standards of auditing (Cowperthwaite, 2009, p. 71). It was considered that, within the Australian audit act system there are strong incentives in ensuring that audit companies endeavor for a good performance according to audit standards. The Skills and Personal Qualities of Audit Partners and StaffIt was found out that skills and qualities of audit partners and staff play a vital role in evaluation quality.
It is viewed that auditing is essential depending on the individual auditors and employees. It was viewed that the conclusions of the auditing information relating to the development, use and benefit of production knowledge, consumer and trade devoted judgment, the individual attributes of auditors, support and maintenance of staff should be put into consideration.