Factors Influencing Quality of Audit Services

AUDITING
ASSURANCE
&
PROFESSIONAL
ETHICS

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Identify and critically discuss the factors that influence the quality of audit services:..........3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Audit has been carried out by the independent auditor firm in order to ensure that books of
accounts of the client are free from material misstatement or not. The auditor simply gives their
opinion with regard to financial statements by carrying out audit for the same. During the course
of audit, the accuracy of financial statements is being cross checked by audit team with the help
of supporting evidence that shows accuracy of transactions that has been entered in books by
client. This report is basically explaining the factors that would affect the quality of audit
services that has been carried out by independent auditor during the course of audit.
TASK
Identify and critically discuss the factors that influence the quality of audit services:
Before conducting the audit of any entity, the auditor should develop a plan to carry out audit in
structured manner. Such plan would be considered as the overall audit strategy that sets the
scope, timing and direction of the audit, and guides the development of the audit plan.
The multiple factor that an auditor must consider while establishing the overall audit strategy
which are mentioned below:
 Determination of characteristics of Audit:
Identify the characteristics of the engagement that defines its scope.
 Reporting objective:
Ascertain the reporting objectives of the engagement to plan the timing of the audit and
the nature of the communications required.
 Team Efforts:
Consider the factor that in the auditor’s professional judgement are significant in
directing the engagement team efforts.
 Preliminary Work:
Consider the results of preliminary engagement activities and where applicable, whether
knowledge gained on other engagements performed by the engagement partner for the
entity is relevant.
 Nature, timing and extent of resources: