Improve Audit Quality Research Articles

The Influence Of Audit Fee, Audit Rotation, Audit Tenure, Company Size, Auditor Specialization And Auditor Reputation On Audit Quality In Manufacturing Companies Listed On The Indonesian Stock Exchange In 2020-2022

The aim of this research is to determine the influence of Audit Fees, Audit Rotation, Audit Tenure, Company Size, Auditor Specialization and Auditor Reputation on Audit Quality in manufacturing companies listed on the Indonesia Stock Exchange in 2020-2022. The method used in this research is quantitative associative method, using secondary data. Based on the research results, it shows that Audit Fees, Audit Tenure and Auditor Specialization partially have no effect on Audit Quality. This shows that audit fees are low and competitive for auditors without reducing auditor quality standards. Audit quality is maintained even though there are changes in the Audit Tenure period. Auditor specialization is reduced, but there is increased training, application of audit standards and use of technology in maintaining effective Audit Quality. Company size partially has a positive and significant effect on Audit Quality. This shows that the auditor has sufficient expertise to handle the high complexity of a large company size, thus providing support for increasing audit quality. Audit Rotation and Auditor Reputation partially have a negative and significant effect on Audit Quality. This shows that a decrease in the frequency of Auditor Rotation can result in a decrease in their objectivity and independence, but auditors have a high perspective and long-term relationship to improve Audit Quality. A decline in auditor reputation can reduce public trust and auditor credibility, but implementing audit standards, strengthening policies and procedures and effective supervision can play a transparent role in maintaining integrity and professionalism by assessing and improving high audit quality standards. Audit Fees, Audit Rotation, Audit Tenure, Company Size, Auditor Specialization and Auditor Reputation simultaneously have a positive and significant effect on Audit Quality. This shows that Audit Fees can ensure auditors work well, Audit Rotation can reduce the risk of fraud, Optimal Audit Tenure does not lose objectivity, Company Size provides resources for comprehensive audits, Auditor Specialization adds value with special skills, Auditor Reputation adds trust and contribute to improving Audit Quality in Manufacturing Companies listed on the Indonesia Stock Exchange in 2020–2022.

Branch Networks, Client Networks, and Knowledge Sharing in Audit Firms

SYNOPSIS In large audit firms, interoffice knowledge sharing is embedded in two networks: the branch network, comprising all branch offices, and the client network, formed by similar engagements. Proximity between branch offices may enhance knowledge accessibility, whereas similarity between engagements could impact the relevance of that knowledge. I investigate how the two networks jointly influence the effectiveness of knowledge sharing. I construct client networks based on the similarity of clients’ product offerings and find that clients with greater centrality in the neighboring client network benefit more from knowledge sharing in terms of improved audit quality. I further show that this effect only exists when similar clients in neighboring offices are larger in size and is more salient when there is a gap in expertise between the current auditing office and neighboring offices. By enriching our understanding of interoffice knowledge sharing, these results offer practical insights to auditors, regulators, and audit-report users. Data Availability: Data are available from the data sources indicated in the paper. JEL Classifications: M42.

Evaluation of the quality of audits of maternal deaths in hospitals in the health districts of communes IV and V of Bamako

Introduction: In Mali, the audit of maternal deaths instituted in 2017 aims to reduce maternal mortality. The objective of this study was to assess the quality of maternal death audits carried out in the hospitals of health districts in communes IV and V of Bamako between 2015 and 2019. Methodology: This was a descriptive, cross-sectional study of 108 maternal death audit reports over the period from 2015 to 2019. The exploitation of the said reports and the interview with the service providers were the techniques used. The ratio between the expected and obtained scores of each audit component allowed them to be assessed. When at least 80% of the expected scores are achieved, the component is considered to be of sufficient level, therefore favorable to quality audits. When the average score obtained for the components is at least 80%, the audit is judged to be of good quality. Results: The performance levels of the "inputs and processes" components of the audits were respectively 80.4% and 74.7% in commune IV and 56.9% and 63.2% in commune V. The performance in terms of results was 40.7% in the two municipalities. The quality of the audit was 70.1% in Commune IV and 56.9% in Commune V. Conclusion: From 2015 to 2019, the audit of maternal deaths was judged to be of average quality in Commune IV and insufficient in Commune V. Training and the active involvement of stakeholders are necessary to improve audit quality. Keywords: Audit, maternal death, district hospitals, Bamako.

Evaluating Telemetry Monitoring Adherence to AHA Guidelines in a Non-Intensive Care Setting: A Quality Improvement Audit at a Tertiary Centre

Evaluating Telemetry Monitoring Adherence to AHA Guidelines in a Non-Intensive Care Setting: A Quality Improvement Audit at a Tertiary Centre

Independence of Government Auditors: Anteceden and Consequences in Improving Audit Quality

Independence of Government Auditors: Anteceden and Consequences in Improving Audit Quality

Persepsi Auditor Eksternal Atas Pengaruh Kemudahan dan Kegunaan Artificial Intelligence Terhadap Kualitas Audit

This study aims to investigate external auditors' perception of the impact of artificial intelligence's ease of use and usefulness on audit quality, while also examining the potential scepticism among external auditors towards the integration of artificial intelligence in the audit process. A quantitative approach is utilized to analyze the relationship between the variables. The research was conducted through questionnaires distributed via telegram and WhatsApp groups, email, and collaboration with IAPI. One hundred and eight valid responses were gathered from external auditors of Big Four KAP, internationally affiliated KAP - non big four, and national KAP. Findings reveal that external auditors do not exhibit a sceptical attitude towards the usage of artificial intelligence in the audit process. The test results demonstrate that external auditors' perceptions of the ease of using artificial intelligence aids in enhancing audit quality. Similarly, gauging external auditors' perceived usefulness or benefits of artificial intelligence can also lead to improved audit quality. This study's sample is limited to external auditors of financial statements at public accounting firms, and therefore the findings should not be extended to other types of auditors such as government or internal auditors. This study offers external auditors a thorough comprehension of how artificial intelligence contributes to the audit process to improve audit quality. The necessity for external auditors to improve their technical skills arises due to the increased utilization of big data by businesses. Hence, universities must provide graduates with competence in not only accounting and auditing but also the latest technology.

Simulation based CPR Training of EMS Staff and its Utility in Managing Remote Patients at Tertiary Care Hospital of Central India

Abstract Introduction: AVBRH is 1500-bedded tertiary care hospital that caters to patients from areas within more than a 50 km radius. Emergency medical services (EMS) are established and frequently on the run. The EMS team has 10 basic life support (BLS) ambulances with 20 drivers and 20 paramedical staff. Daily, 3–5 highly critical patients who are in need of cardiopulmonary resuscitation (CPR) are transferred to the AVBRH hospital. The optimal medical care while transferring the patient to AVBRH hospital was unmonitored and without any benchmark. A low-risk simulation-based environment to practice can be valuable to maintain a wide array of skills. Effective and prompt delivery of expert instruction and guidance by a telesimulation is approved to be a beneficial approach in this setting. Training of EMS staff helps to improve patient care and satisfaction. Hence, we decided to undertake the simulation-based CPR training of the staff and correlate the outcome with existing mortality data of Medical record department (MRD). Objective: To optimize health care while transferring the patient to a tertiary hospital by BLS training and teleassisting. To see the impact of teaching and assisting on overall patient outcomes at the emergency department. Methodology: Forty EMS participants were enrolled and trained for 2 days. On day 1, they were trained in BLS, while on day 2, training in working as a team through simulation at school of virtual learning was done. They were trained to work as a team through simulated case scenarios with effective telecommunication while transferring the patient to the hospital. After training, these EMS staff were monitored and assisted according to the protocol of BLS by the emergency medicine department through telecommunication on the field for the next 3 months and reassessed again after the completion of 3 months. The following tabulated assessment format is used for EMS staff attending to the patient on the field. The prefield assessment on the same day of training and on postfield assessment after 3 months at school of virtual learning-simulation lab (SVL) was conducted. The data were gathered, tabulated, and analyzed for the percentage. Conclusion and Recommendation: Simulation-based teaching by a facilitator along with effective telesimulation creates an important link and gaps in the bridge between knowledge and technical skills. It has been found that overall patient care and performance of EMS staff was significantly improved; hence, recommendations for continuous assistance while transferring the patients are given. Training of the newly appointed EMS crew and the other available EMS services from the district should be aligned with assisted telecommunication services of AVBRH. Regular audit for quality improvement in EMS performance to be imparted.

Remote Auditing, Aspect of Auditor Behavioral and Use Of Technology

This scoping review aims to map out existing studies related to remote auditing that focus on the topics of auditors' behavioural and technology use. The importance of auditors' adaptation to the challenges posed by the pandemic and the need for improved skills and knowledge in the face of a changing work environment. This review refers to five stages, namely: 1) identification of research questions; 2) identification of relevant research; 3) selection of articles; 4) data mapping; and 5) compiling, summarising and reporting the results. The time span of the article is 2021-2024. The results of this review revealed that most studies recognised an increase in the efficiency of their daily tasks in terms of remote auditing. However, there is still debate regarding auditor behaviour that is influenced by remote auditing activities, which is feared to reduce skepticism. In addition, the use of technology in remote auditing brings data security threats. Therefore, further research is needed to uncover auditor scepticism and data security in remote audit activities. This review is expected to provide greater insight into the importance of remote auditing, auditor adaptation to change, and technology utilisation in improving audit quality in today's digital era

Determinan Kualitas Audit dimoderasi oleh Komite Audit

This study aims to analyze the factors that influence audit quality variables, especially audit tenure and the reputation of the Public Accounting Firm. In addition, this study examines whether the audit committee can strengthen or weaken the improvement of audit quality in the company. This study uses quantitative methods, and the data source is secondary data. The population of this study consists of 30 IDX companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2021. The population and sample in this study are IDX 30 companies listed on the IDX in the 2016-2021 period. The sample was selected using the purposive sampling method. There are 16 companies listed on the Indonesia Stock Exchange in IDX, 30 companies during 2016-2021 that match the researcher's criteria. The analytical methods used in this study include descriptive statistical analysis, logistic regression analysis, and moderation hypothesis testing using moderated regression analysis. This study found that audit tenure has no impact on audit quality. However, KAP size was found to affect audit quality significantly. The Audit Committee is unable to moderate the effect of Audit Tenure on Audit Quality; The Audit Committee is unable to moderate the effect of KAP size on audit quality.

Pengaruh Penerapan Remote Audit pada Kualitas Audit Internal Pasca Pandemi Covid-19

Despite the challenges encountered in the field, audit quality within the scope of internal audit remains a top priority. The study outlines the ways in how remote audits impact audit quality and the approaches implemented by internal auditors to enhance audit quality. Examining the effect of remote auditing on audit quality is appropriate given the COVID-19 pandemic. This combination of auditor competence and time budget pressure to moderate the effect of remote audits on internal audit quality are also addressed in this study. Survey data is used in this study to measure how far APIP in East Java Province began using remote auditing after the epidemic. SmartPLS is used in the analytical method combined with the Structural Equation Modeling (SEM) model such as reliability and convergent validity test, discriminant validity test and PLS path algorithm and bootstrapping test. The research questionnaire's are measured using a Likert scale (1-7). Remote audits have a positive effect on improving internal audit quality, according to the result of a survey conducted towards 76 out of 100 internal auditors. But auditor competence and time budget pressure does not significantly moderate such a relationship. The research's conclusions have significance for practitioners looking to improve audit quality in remote audits and may benefit users of financial reports to comprehend the level of audit quality in remote audits

Intraoperative use of processed electroencephalogram in a quaternary center: a quality improvement audit.

Although intraoperative electroencephalography (EEG) is not consensual among anesthesiologists, growing evidence supports its use to titrate anesthetic drugs, assess the level of arousal/consciousness, and detect ischemic cerebrovascular events; in addition, intraoperative EEG monitoring may decrease the incidence of postoperative neurocognitive disorders. Based on the known and potential benefits of intraoperative EEG monitoring, an educational program dedicated to staff anesthesiologists, residents of Anesthesiology and anesthesia technicians was started at Cleveland Clinic Abu Dhabi in May 2022 and completed in June 2022, aiming to have all patients undergoing general anesthesia with adequate brain monitoring and following international initiatives promoting perioperative brain health. All the surgical cases performed under General Anesthesia at 24 daily locations were prospectively inspected during 15 consecutive working days in March 2023. The use or absence of a processed EEG monitor was registered. Of 379 surgical cases distributed by 24 locations under General Anesthesia, 233 cases (61%) had processed EEG monitoring. The specialty with the highest use of EEG monitoring was Cardiothoracic Surgery, with 100% of cases, followed by interventional Cardiology (90%) and Vascular Surgery (75%). Otorhinolaryngology (29%), Gastrointestinal Endoscopy (25%), and Interventional Pulmonology (20%) were the areas with the lowest use of EEG monitoring. Of note, in the Neuroradiology suite, no processed EEG monitor was used in cases under General Anesthesia. We identified a reasonable use of EEG monitoring during general anesthesia, unfortunately not reaching our target of 100%. The educational and support program previously implemented within the Anesthesiology Institute needs to be continued and improved, including workshops, online discussions, and journal club sessions, to increase the use of EEG monitoring in underused areas.

VTE prophylaxis for major abdominal surgery: A hospital audit and nurses' survey for quality improvement

Objective: The objective of this study is to assess and improve VTE prophylaxis practices in major abdominal surgery through a hospital audit and nurses' survey. Primary aims: Evaluate adherence to VTE prophylaxis guidelines in abdominal surgery, identify improvement opportunities in VTE prevention and assess the effectiveness of current prophylactic measures. Nurses’ survey: Evaluate surgical nurses' knowledge and implementation of VTE prophylaxis and identify educational gaps to improve VTE prevention. Secondary aims: Integrate audit and survey insights: Gain insight into VTE management practices, to develop quality improvement programs for better prophylaxis and outcomes. Background: Guidelines for the prevention of venous thromboembolism (VTE) in surgical patients involve risk assessment, followed by chemical and mechanical prophylaxis. Often, VTE risk assessments are not completed which leads to inappropriate or inadequate prophylaxis. The current guidelines suggest that a healthcare provider, such as a nurse or physician, should conduct the VTE risk assessment for each patient. Study design and methods: Initially, a prospective audit was conducted to examine VTE prophylaxis practices at a tertiary hospital. This VTE audit was conducted alongside a nurses' survey to assess current VTE prophylaxis practices. Both measures were taken to review the quality of care provided to surgical patients. Results: The practice of VTE prophylaxis shows high utilisation of all three prophylactic modalities but a lack of risk assessment documentation in the medical records. Nurses, although perceiving it as their responsibility, do not conduct assessments for venous thromboembolism risk. Conclusion: Based on the audit and survey results, the hospital has not fully adopted the guidelines for venous thromboembolism prophylaxis in major abdominal surgery cases. There is a lack of proper risk assessment documentation, and nurses are not consistently engaged in conducting these. Implications for research, policy, and practice: This paper presents valuable insights into the current prescribing practices for VTE prophylaxis after major abdominal surgery, as gleaned from a clinical audit and a survey of nurses. The hospital audit indicates that overall, all three are being used, instead of two. While this approach does not contravene current guidelines, the use of both stockings and compression devices is not needed, instead adding new risks, unnecessary nursing workload and financial cost to health services. Further, this approach may prolong recovery with patients unable to mobilise while wearing compression devices to take part in rehabilitation programs. What this paper adds: This paper adds to the existing literature by highlighting the gap between recommended guidelines and the actual implementation of VTE prophylaxis practices in the context of major abdominal surgery. These results provide meaningful clinical relevance about VTE prophylaxis practice for nurses and surgeons involved major abdominal surgery. The continuing education of Australian nurses should include an emphasis on VTE risk assessment and prevention.

Firm sensitivity to changes in policy uncertainty and its impact on audit pricing

PurposeThis paper aims to examine how a firm’s exposure to economic policy uncertainty affects the auditors’ perceptions of financial reporting risk. Firms that are more sensitive to policy uncertainty are predicted to engage in more earnings management because these firms are more likely to experience greater uncertainty in future operations. Audit fees will reflect this reporting risk. On the other hand, auditors might feel more fee pressure from policy-sensitive firms because firms are more inclined to reduce spending in the face of uncertainty and subsequently charge lower fees.Design/methodology/approachThe author tests my hypothesis using U.S. data on audit fees and client characteristics of public companies between the years 2001 and 2021. The author estimates a standard audit fee model based on the audit fee literature (Hay et al., 2006) while also including the two policy sensitivity measures. This study uses panel data methods that allow time-series analyses, providing a powerful setting to test dynamic audit fee adjustment to improve the understanding of the audit market.FindingsThe results suggest that audit fee is higher for policy-sensitive firms than for policy-neutral firms. These results are robust to various proxies of policy sensitivity and various specifications designed to mitigate the endogeneity concerns. The study provides assurance that on average, auditor pricing reflects client risk adequately, mitigating the concern that auditors give in to fee pressure and compromise audit quality as a result.Research limitations/implicationsWhile the findings from this study should be of value to regulators and academics seeking to understand audit activities amid escalating macroeconomic uncertainty, when interpreting these results, several limitations must be considered. The study does not examine how external auditors evaluate risks tied to policy uncertainty. A comprehensive understanding of how and why external auditors respond to heightened policy uncertainty faced by firms could be better achieved through interviews with external auditors and audit committee members. In addition, while this study posits that auditors adjust their approach in response to changes in policy uncertainty, largely due to potential shifts in the risks of material misstatement, there might be additional factors at play that warrant higher audit fees post a change in policy uncertainty. For instance, specific policy changes may give rise to new risks or modify existing ones, thereby precipitating increased scrutiny of records and procedures as company directors’ demand. These aspects offer potential avenues for future research.Practical implicationsThis study underscores the significant role of policy sensitivity in determining audit fees and audit quality. Policy-sensitive firms present unique complexities and potential risks that require additional effort and vigilance from auditors. Auditors must develop a specialized understanding of sectors prone to policy fluctuations to navigate these unique challenges effectively. In addition, the role of professional standards boards and regulators in establishing guidelines for auditing policy-sensitive firms cannot be understated. Such guidelines could lead to more consistent audit practices and improved audit quality. Finally, by recognizing and effectively responding to the policy sensitivity of client firms, audit firms can mitigate their own risks, strengthen public trust and enhance the reliability of financial reports.Originality/valueFirst, this study adds to an emerging stream of auditing literature that focuses on how audit fees interact with a firm’s external environment by providing evidence of an unexplored implication, a firm-specific policy sensitivity. Second, my main construct, policy sensitivity, provides two distinct advantages over other variables used in prior studies that explore the relationship between audit fees and external firm environments. Third, this study answers the calls for research by De Villiers et al. (2013, p. 3), who identified the cost behavior of audit fees, especially over time, as an area not well understood.

Mandatory audit partner rotation and stock price crash risk: causal evidence from a natural experiment

PurposeThis study aims to examine whether mandatory audit partner rotation is associated with future stock price crash risk.Design/methodology/approachThis study makes use of a regulatory change from the Ministry of Finance of China and the China Securities Regulation Commission, which requires mandatory rotation of audit partners since 2004, as a natural experiment to establish causality and applies a difference-in-difference research design.FindingsAudit partner rotation leads to a significant decrease in future stock price crash risk in the departing partner’s final year of tenure preceding mandatory rotation, consistent with peer monitoring argument of mandatory rotation. Inconsistent with other arguments, including client-specific knowledge, fresh perspective and auditor independence, no significant effect takes a place in the incoming partner’s first year of tenure following mandatory rotation. Mechanism analysis documents that mandatory audit partner rotation reduces stock price crash risk by improving audit quality and constraining managerial empire building.Originality/valueThe results shed new light on the capital market consequence of mandatory audit partner rotation and the cause of stock price crash risk.

Factors Affecting Risk-Based Audit and Quality Audit

There are various issues that are associated with audit quality, which can often lead to audit failures. The State Audit Office of Vietnam (SAV) needs assistance in improving its audit quality. This study was conducted to provide empirical evidence about the correlation between the risks of audited entities, the competitive ability of state auditors, and audit quality. The study also seeks to establish the moderating effect of risk-based auditing on the relationship between the abovementioned factors and audit quality. The research data was collected from 221 state auditors and analyzed using SEM linear structure analysis with SmartPLS 4.0.8.5 software. The research findings suggest that the risk of the audited entity and the competitive ability of state auditors positively and significantly impact the application of RBA, which contributes to the assurance of audit quality in SAV. Therefore, the practical application of RBA, which involves accurately identifying the risks of audited entities, helps to improve audit quality and efficiency. This study contributes to the theory of audit quality in the public sector, which is diverse and inconsistent due to various economic and political factors such as corruption and reputation. Doi: 10.28991/ESJ-2024-08-03-010 Full Text: PDF

Pengaruh Accounting Disruption Pada Kualitas Audit Dimediasi Beban Kerja Audit

This study aims to prove the effect of accounting disruption on audit quality with audit workload as an intervening variable at the Public Accounting Firm in Malang City. This research method uses quantitative research methods. This study uses primary data with data collection techniques through distributing questionnaires to 56 research samples using the convenience sampling method . The results of this study indicate that accounting disruption has a positive effect on audit quality directly and has a negative effect on audit workload. Audit workload has a negative effect on audit quality and there is an effect of accounting disruption on audit quality through mediation of audit workload. Changes in information technology in the field of corporate accounting make it easier for auditors to track audit evidence so as to improve audit quality.

Kualitas Audit: Kajian dari Perspektif Kompetensi, Independensi dan Etika Pada KAP Jojo Sunarjo dan Rekan Cabang Pekanbaru

This study aims to determine the importance of the role of competence, independence, ethics on audit quality at KAP Jojo Sunarjo and Partners Pekanbaru Branch. The research method used is a quantitative method with a descriptive approach. The data used in collecting data is a questionnaire. The results show that competence, independence, and ethics play a role in improving audit quality at the Jojo Sunarjo and Partners Public Accounting Firm, Pekanbaru Branch. Competence is the most urgent thing to improve audit quality.

Pengaruh Arus Kas Bebas dan Efektivitas Komite Audit Terhadap Kualitas Audit

Good audit quality is an important factor in ensuring the integrity and reliability of an entity's financial reports. This research aims to examine the influence of free cash flow and audit committee effectiveness on audit quality. Free cash flow reflects the availability of financial resources for a company to finance operational and audit activities. Meanwhile, an effective audit committee can ensure adequate oversight of the financial reporting and audit processes. This research uses panel data which includes companies listed on the Indonesia Stock Exchange during the 2018-2022 period. Free cash flow is measured using the ratio of operating cash flow to total assets, while audit committee effectiveness is measured using a composite score that includes the audit committee's independence, expertise and activities. Audit quality is assessed based on proxies such as the size of the public accounting firm, auditor industry specialization, and audit fees. The research results show that free cash flow and audit committee effectiveness have a significant positive influence on audit quality. Companies with high free cash flow tend to have adequate resources to pay higher audit fees, thereby encouraging auditors to carry out a more in-depth and quality audit process. In addition, an effective audit committee can ensure good oversight of the financial reporting and audit process, thereby improving audit quality. These findings provide important implications for companies and regulators in improving audit quality through managing free cash flow and establishing effective audit committees. Future research can explore other factors that influence audit quality and include relevant control variables.

Pengaruh Tata Kelola Perusahaan, Komite Audit, Dan Kualitas Audit Terhadap Kinerja Perusahaan

Corporate governance, audit committee, and audit quality are important factors that can influence company performance. Good corporate governance can create an effective internal control system, increase transparency and maintain company accountability. The audit committee, as part of corporate governance, plays a role in overseeing the financial reporting process, evaluating the internal control system, and monitoring external audit performance. High audit quality can increase stakeholder confidence in the company's financial reports and provide guarantees for the accuracy and reliability of financial information. This research aims to analyze the influence of corporate governance, audit committee, and audit quality on company performance. Corporate governance variables are measured using corporate governance scores, while audit committee variables are evaluated based on the characteristics and effectiveness of the audit committee. Audit quality is assessed by the reputation and experience of the external auditor. Meanwhile, company performance is measured using financial ratios such as return on assets (ROA) and return on equity (ROE). This research uses data from companies listed on the Indonesia Stock Exchange (BEI) during a certain period. Data analysis was carried out using the multiple linear regression method to test the influence of independent variables on the dependent variable. It is hoped that the findings of this research will contribute to the development of corporate governance practices, audit committee management, and improvement of audit quality in Indonesia, as well as provide insight for companies in efforts to improve their financial and operational performance.

Reflections of including key audit matters in the audit quality and audit fees of publicly traded companies in Brazil

Considering the context of the changes implemented by the revised ISA 700, which required including items such as Key Audit Matters (KAMs), this article aimed to examine the effects of the changes in ISA 700 on audit quality and fees. Accounting and market data, information on the responsible audit firms, and the number of KAMs disclosed by publicly traded companies in Brazil were collected from 2014 to 2017. Overall, the results did not demonstrate evidence of improvement in audit quality after adopting the revised ISA 700. Audit fees also did not show statistically significant changes when comparing the period before and after adopting the new requirement. So, the study concluded that, during the four-year period surrounding the adoption of the new requirements, there was no evidence of an increase in audit quality or auditor fees for publicly traded companies in Brazil. This article expands academic discussions in the Brazilian capital market regarding the implications of including KAMs in audit reports, as well as the analysis of the practical effects of applying standards issued by regulatory bodies.