Factors Influencing Audit Quality: Auditing, Assurance & Professional Ethics

AUDITING
ASSURANCE &
PROFESSIONAL
ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
Identify and critically discuss the factor that influence the quality of audit service..............3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
An audit is an independent examination of financial statements of an entity whether it is
profit oriented organisation or non-profit oriented organisation to expressing the true and fair
view of opinion. The audit function is performed by the Chartered Accountants from ICAI. The
main purpose of the audit is to determine the books of accounts are prepared in according to law.
The word Ethics means to determine the behaviour of the person of performing an activity. In
this report to identify and critically discuss those areas which is affected the quality of audit
services. The several factor which is affected the auditor ability like as judgement, honesty and
competence (Shin and et.al, 2019).
TASK
Identify and critically discuss the factor that influence the quality of audit service
The overall objective of audit to obtain reasonable assurance whether the financial
statement that is Balance sheet, Income statement and Cash flow statement are free form material
misstatement and communicate as required by standard on auditing. The audit should have
covered all factors of the financial statement which is important being audit and auditor should
be satisfy that contain all the information in financial statements are reasonable. The auditor
should decide the important information disclosed properly in books of accounts and irrelevant
information should be disclosed in notes to accounts (Ferdousi and et.al, 2018). The following
topics to be disclosed when performing an audit function-
 To verifying the existence and proper working system of the internal control.
 To determine the proper entries in books of account to carry supporting documents.
 The proper classification between the capital nature of expenditure and revenue
expenditure.
 To verify the balance sheet, profit and loss account and other statements in accordance
there with.
 To check the existence, title and asset value in the balance sheet and are
proportionately disclosed.
 To check the result, disclose of profit and loss are true and fair.