AAAP7 INT
Syllabus G. Current Issues G2. Other current issues

G2abc. Current Developments In Auditing Standards - Part 3 3 / 4

IAASB A Framework for Audit Quality

Although audit quality is principally the responsibility of auditors, there are many factors that contribute to
it.

The IAASB describes these other factors using the following framework.

Contextual factors determining audit quality include:

Business practices and commercial law
Laws and regulations relating to financial reporting
The applicable financial reporting framework
Information systems
Corporate governance
Financial reporting timetable
Audit regulation
Litigation environment
Attracting talent
Financial reporting timetable

Inputs which may contribute to a high quality audit:

Values, ethics and attitudes of auditors and the audit firm
Knowledge. experience and time allocated to perform the audit

Outputs from audit quality may flow from:

The auditor
The audit firm
The entity
Audit regulators

Key interactions with regard to audit quality include:

Auditors and management, those charged with governance, users, regulators
Management and those charged with governance. regulators, users
Those charged with governance and regulators, users
Regulators and users