Monitoring audit quality and firm resources of audit firm practices in Malaysia

The implementation of ISQC 1

Aida Hazlin Ismail, Takiah Mohd Iskandar, Zuraidah Mohd Sanusi, Zaleha Abdul Shukor

Research output: Contribution to journalArticle

Abstract

Audit quality is the core of business strategy and key driver of success for audit firms. With the adoption of International Standard Quality Control (ISQC 1), the Malaysian Institute of Accountant (MIA) is enforcing quality control for all audit firms in Malaysia. Semi-structured interviews were conducted for four discussion groups comprised of audit seniors, managers and partners of Big 4 and non-Big 4 audit firms. This research paper reports an exploratory study on the implementation and acceptance of ISQC 1. Results indicate that small audit firms in Malaysia are prepared with the implementation of ISQC 1. However, acceptances vary between the Big 4 and non-Big 4 audit firms. Results also indicate that working experience of the auditors, professional qualifications; education background and on-the-job trainings, and job performance appraisals, do have an effect on audit quality. Hence, the audit firm resources such as human resource characteristics are important in ensuring quality audit work.

Original languageEnglish
Pages (from-to)335-351
Number of pages17
JournalInternational Journal of Management Practice
Volume11
Issue number3
DOIs
Publication statusPublished - 1 Jan 2018

Fingerprint

Firm resources
Audit firms
Malaysia
Audit quality
Monitoring
Quality control
Acceptance
Big 4
Business strategy
Qualification
Senior managers
Job performance
Quality audit
On-the-job training
International standards
Structured interview
Auditors
Human resources
Education
Audit

Keywords

  • Audit quality
  • Auditors
  • Firm resources
  • Human resource characteristics
  • ISQC 1
  • Qualitative
  • Resource-based view theory

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

Monitoring audit quality and firm resources of audit firm practices in Malaysia : The implementation of ISQC 1. / Ismail, Aida Hazlin; Iskandar, Takiah Mohd; Sanusi, Zuraidah Mohd; Abdul Shukor, Zaleha.

In: International Journal of Management Practice, Vol. 11, No. 3, 01.01.2018, p. 335-351.

Research output: Contribution to journalArticle

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