Abstract
The effects of the financial crisis during the last decade derived by major financial scandals in major corporations and the uncertainty that still follows the economic situation has emphasized the need to regain the confidence of the users in the financial information. In these conditions, the need for certified and reliable financial information is a challenge that mostly affects the auditors, which should be stimulated to improve the audit quality. There is a wide range of studies and authors who try to determine the most influence factors that affects the auditing quality. The objective of this paper is to study how various internal and external factors like audit firm culture, quality of people, management and audit committee as well as general cultural and political factors affects the audit quality in Albania. Identifying the main factors that can improve the auditing quality in Albania can contribute to our understanding of how the Albanian auditors adopt the auditing standards to accomplish the quality control and other related reporting responsibilities. The study will be widely based on international standards on auditing and assurance engagements to identify the main factors affecting the quality control of auditing according to most popular and used classification. The objective of this study will be completed by analyzing the views from the respondents (CPA and independent auditors) obtained from the utilization of the questionnaires and interviews as well as the usage of foreign and national literature. DOI: 10.5901/ajis.2015.v4n3s1p223
Highlights
Auditing is a concept that emerged when the first formal record-keeping systems were first instituted by organized business and governments in the Near East to allay their concerns about correctly accounting for receipts and disbursements and collecting taxes.1 Today’s audit involves performing procedures to obtain evidence about amounts and disclosures in the financial statements so as to evaluate the appropriateness of accounting estimates made by management (KPMG, 2008)
The necessity of auditing is becoming more evident in today’s modern economy where a large number of persons are depending on reliable financial information in order to invest in companies listed in international stock markets
The Main Factors Affecting Auditing Quality in Albania In Albania the certified public accountant (CPA) can practice the independent auditor based on law no.: 10091 dt. 5.03.2009 “For the lawful auditing, organization of the CPA profession and certified accountants”
Summary
Auditing is a concept that emerged when the first formal record-keeping systems were first instituted by organized business and governments in the Near East to allay their concerns about correctly accounting for receipts and disbursements and collecting taxes. Today’s audit involves performing procedures to obtain evidence about amounts and disclosures in the financial statements so as to evaluate the appropriateness of accounting estimates made by management (KPMG, 2008). The necessity of auditing is becoming more evident in today’s modern economy where a large number of persons are depending on reliable financial information in order to invest in companies listed in international stock markets. Many authors describe and define the auditing quality from different aspects Some authors define it as the capability of an auditor to find and report material errors, misrepresentation and weather the financial statements are based on international accounting standards. These factors are general and can be valued in different perspectives depending in the auditors professionalism and objectivity. These are the two factors that mostly can compose the auditing quality
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