Assessing the impact of intellectual capital on audit quality within the audit market dynamics

Abstract

This study aims to analyse the relationship between Intellectual Capital and Audit Quality in the context of the competitive Audit Market. The main goal of the research is to analyse the impact of Intellectual Capital on Audit Quality, specifically focusing on its presence and management. The methodology utilised a systematic literature review approach, which involved creating a detailed protocol to define the research question, guide the synthesis methodology, and establish criteria for inclusion and quality assessment. The Scopus database was used to conduct a search based on predetermined criteria. This search yielded a total of 217 initial results. After a process of refinement and thematic selection, a total of 144 papers and reviews were chosen for analysis. The selection was made in accordance with the PRISMA statement filtration. The study highlights the significant connection between Intellectual Capital and Audit Quality, underscoring the strategic value of intellectual assets in improving the effectiveness and trustworthiness of audit services in competitive auditing firms. The study highlights the importance of consistently investing in knowledge-based skills, advanced technology, and human capital to effectively respond to changing client demands and regulatory obligations. The implications of this extend to various parties such as auditors, policymakers, and stakeholders. It highlights the significance of promoting a culture that encourages knowledge sharing, investing in training and development initiatives, and adopting advanced audit procedures. These measures are crucial for improving overall audit quality and enhancing the credibility of financial reporting in the ever-changing audit market.