Audit Quality: Insights from the Academic Literature

TLDR

This review surveys academic research on audit quality and proposes directions for future studies. The authors examine definitions, frameworks, and indicators of audit quality, including inputs, processes, and outcomes. The review is intended to aid academics and regulators such as the PCAOB.

Abstract

SUMMARY This study presents a review of academic research on audit quality. We begin with a review of existing definitions of audit quality and describe general frameworks for establishing audit quality. Next, we summarize research on indicators of audit quality such as inputs, process, and outcomes. Finally, we offer some suggestions for future research. The study should be useful to academics interested in audit quality as well as to the Public Company Accounting Oversight Board (PCAOB) and other regulators.