RESEARCH ON FACTORS AFFECTING ORGANIZATIONAL STRUCTURE, OPERATING MECHANISM AND AUDIT QUALITY: AN EMPIRICAL STUDY IN VIETNAM

Phan Thanh Hai,Le D Toan,Chuc A Tu

doi:10.3846/jbem.2019.9791

Phan Thanh Hai, Le D Toan + Show 1 more

Open Access

https://doi.org/10.3846/jbem.2019.9791

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Abstract

This research aims to determine factors affecting and the level of their influence on or-ganizational structure, operating mechanism and audit quality in the Vietnamese market. In this paper, the methodology used by the authors is mixed method.Combination of the qualitative re-search method and the quantitative research method on the basis of meta-analysis and synthesis of existing information from various sources and results of interviews carried out in early 2018 using a questionnaire for 270 auditors who now work at audit firms in Vietnam. The results of the research showed that factors affecting the operating mechanism of audit firms include the legal system, quality control and internal corporate governance. Factors affecting the audit quality are the organizational structure and the operating mechanism of audit firms. Among these factors, the operating mechanism has the greatest impact on and plays a decisive role in the audit quality. In addition, the research showed that factors affecting the organizational structure of audit firms in Vietnam are unobvious

Highlights

Up to now, there has been a large number of researches on factors affecting the audit quality such as researches by DeAngelo (1981), Chadegani Aghaei (2011), Francis (2011), Al-Ajmi (2009), Lennox (2005), Favere-Marchesi (2000), etc
2002), the research on the fact that Vietnamese audit firms are members of international audit firms has an influence on the audit quality (Ha, 2012), the research on audit fees, audit firm size, reputation and audit quality (Pham, Duong, Pham, & Ho, 2017), and the research on audit quality control inside and outside audit firms (Tan, 2009; Lam, 2011; Tuan, 2014)
The results show that the relationship between external quality control and audit quality is extremely necessary and important, especially the audit of financial statements by listed enterprises, mass companies in Vietnam

Summary

Introduction

There has been a large number of researches on factors affecting the audit quality such as researches by DeAngelo (1981), Chadegani Aghaei (2011), Francis (2011), Al-Ajmi (2009), Lennox (2005), Favere-Marchesi (2000), etc. The issue is dealt with in many researches by Vietnamese authors, especially the research on relationship of regulatory organizations and independent audit supervision organizations with audit firms and audit quality As for meta-researches on factors affecting the audit quality in Vietnam, it is possible to mention researches by Thuy (2014), D. Until now, there have been no researches in Vietnam, a developing country in Southeast Asia, affirming that audit organizational model consists of two main factors, namely the organizational structure and the operating mechanism, except for the PhD research by Hai (2014). Hai et al Research on factors affecting organizational structure, operating mechanism and audit

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