Assessing the Impact of Audit Quality on Accountability and Transparency among Financial Institutions in the United States: A Systematic Review and Meta-Analysis

Abstract

This study conducted a systematic review and meta-analysis on the impact of audit quality on accountability and transparency among financial institutions in the United States. By synthesizing empirical evidence from relevant literature, the study aimed at providing a comprehensive understanding of the relationship between audit quality and financial reporting practices in the banking and financial sector. This research not only evaluated the effectiveness of current auditing standards but also offers valuable insights for policymakers, regulators, and industry stakeholders seeking to enhance the overall quality and trustworthiness of financial reporting. The review methodology involved a rigorous selection process to identify and analyze relevant studies that have investigated the relationship between audit quality, accountability, and transparency in financial institutions. By aggregating the findings of these studies, the study conduct a meta-analysis to identify trends, patterns, and areas of consensus or divergence. This approach enabled the researcher to assess the strength and generalizability of the evidence, as well as highlight potential gaps in the literature. The findings of the study revealed a significant positive association between audit quality and the level of accountability and transparency in financial institutions. Enhanced audit quality leads to more accurate financial reporting, which in turn strengthens the trust of stakeholders in the financial sector. The meta-analysis also identified the effectiveness of a risk-based audit approach, the importance of auditor independence, and the need for greater regulatory oversight in fostering higher-quality audits. Furthermore, study observed a positive relationship between transparency in the auditing process and stakeholder trust, underscoring the importance of robust disclosure requirements. The study concludes by providing recommendations for improving audit quality, promoting transparency, and strengthening accountability among financial institutions in the United States. Keywords: Audit quality, accountability, financial transparency, financial growth