AUDIT QUALITY: TO THE ISSUE OF REFINING THE CONCEPT
Abstract. The purpose of the article is to systematize and generalize the existing approaches to interpret the audit quality concept and judge it as for its implementation. The strictest demand for high quality audit is one of the important trends, which have become clear recently. The further development of audit at all levels is inextricably linked to improving its quality. Audit information is the basis for management decisions, so improving the audit information quality, and therefore, audit quality, will improve the quality of management decisions, which will inevitably affect the economic and financial situation at all the management levels, and reduce information risk during decision-making by all the financial information users. The importance of the audit information quality in modern economic processes has also been considered. The audit impact on the development of economic processes at the micro- and macro-levels has been studied. Theoretical insights into the issue of determining audit quality have been analyzed, which is crucial both for the methodology of audit performance and audit quality evaluation, and for audit information reliability, thus being useful for all the financial information users. These theoretical insights also have a significant impact on the practical audit activities, the reliability of the information provided, its quality indicators and other factors that are important for audit information users. It has been proven that the main criterion for audit information quality is its reliability and compliance with the actual state of the audited entity. The study of the causes of the global economic crisis, which unfolded in 2008 with all its severity, revealed a range of problems caused by decisions made on the basis of audited financial statements. Among the main causes of this financial crisis, in addition to the general economic ones, is, firstly, accounting quality and audit quality, which significantly contributed to the bankruptcy of key financial institutions, thus leading to the crisis; and secondly, insufficient control over possible fraud by audited enterprises. Both are the result of low quality audit. A new definition of audit quality is given, which differs greatly from most of the current ones. This, in turn, makes it possible to more accurately and correctly identify the directions, methods, principles and other components of audits, considerably improving their quality. In the long run, improving audit quality should significantly reduce the risks of crisis development in the real sector of economy.
Keywords: audit quality, audit, audit services, evaluation, control, reliability, actual state, audited object.
JEL Classification M42
Formulas: 0; fig.: 0; tabl.: 2; bibl.: 31.
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