Towards an Understanding of Audit Quality
Date
2024-07-27
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Sheffield
Abstract
This study explores perceptions of audit quality (AQ) and audit quality indicators (AQIs) in Saudi
Arabia. AQ and AQIs are explored from the perspectives of external auditors, members serving on the
boards of directors of Saudi listed companies (BoDs), and members of the Professional Practice and
Quality Review Committee (PPQRC) of the Saudi Organisation of Chartered and Professional
Accountants (SOCPA). This research focuses on how these stakeholders define AQ and AQIs, and how
Western auditing practices have shaped perceptions of AQ and AQIs in the Saudi context.
A mixed-methods research design is used to collect and analyse data. Data from a questionnaire issued
to 200 participants are descriptively analysed and semi-structured interviews undertaken with 34
participants are thematically analysed. The findings reveal general shared perceptions of AQ among
the participants, despite their different interests. The study finds that AQIs in Saudi Arabia are
predominantly associated with the auditor and the audit firm, and Western auditing practices have a
strong influence on perceptions. The International Financial Reporting Standards/International
Auditing Standards (IFRS/ISAs) also shape perceptions of AQ and AQIs in the local environment.
The study contributes on multiple levels. Theoretically, it provides a deeper understanding of AQ and
AQIs in the Saudi context. Methodologically, it advances research by employing a mixed-methods
design that integrates quantitative and qualitative approaches in the Saudi context. Empirically, it
contributes in its field of research by exploring the role of Western auditing practices in shaping AQ
and AQIs in Saudi Arabia. Practically, it provides insights for auditors, BoDs, and regulators for
improving audit quality practices in Saudi Arabia. It also serves as a reference guide for future research
within the Gulf Cooperation Council (GCC) and other developing countries.
Keywords: audit quality, perceptions, indicators, Saudi Arabia, external auditors, Board of Directors,
SOCPA, Western auditing practices, international standards, IFRS, ISA.
Description
Keywords
audit quality, perceptions, indicators, external auditors, Board of Directors, SOCPA, Western auditing practices, international standards, IFRS, ISA