Several studies have investigated the relationship between audit quality and auditor size.
Most of them confirmed that the large size auditors are positively correlated with audit quality . On the other hand, some other surveys have mentioned that there is no difference between large audit firms and smalls one in terms of their impact on audit quality, both of them have the potential to reach an acceptable level audit qualityIndustry expertiseAccording to literature, it is clear that the expertise of the auditor plays an important role in improving audit quality. Demanding auditor specialization in an industry leads to a higher level of technical competence and technical information. It is mainly due to auditor’s potential ability to detect financial statement errors. Industry expertise advantages together with general audit knowledge can enhance the audit technical ability and audit reputation and so increase audit quality as well as leading to a higher level of audit fees.
Best services for writing your paper according to Trustpilot
