Universal Journal of Accounting and Finance Vol. 9(6), pp. 1405 - 1421
DOI: 10.13189/ujaf.2021.090619
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Output Indicators of Audit Quality: A Framework Based on Literature Review


Amine El Badlaoui *, Mariam Cherqaoui , Omar Taouab
National School of Business and Management of Kenitra, Ibn Tofail University, Kenitra, Morocco

ABSTRACT

The purpose of this paper is to review the research literature dealing with output indicators that indicate the level of audit quality: Auditor's report, bankruptcy, client satisfaction, auditor litigation and expectation-gap. This paper reviews a total of 89 papers authored post-2012, which relates to output indicators of audit quality, using a Systematic Literature Review. For each study, we demonstrated the methodology used (Archival/ Experimental), the sample chosen and the main results. Based on our findings, studies on the audit report state that it should contain more information and detail. For bankruptcy, researchers find that going concern opinion is an essential element in predicting bankruptcy, and that the auditor becomes more conservative after a bankruptcy. Through experimental studies on client-satisfaction studies, researchers have ruled on the elements that can satisfy clients on the audit work. The research on auditor litigation state that auditors being sued provide higher audit quality because they have more wealth at risk in case of litigation. The common cause of audit expectation-gap is the misperception of the auditors' responsibility to detect and prevent fraud. We contribute to the literature in the following aspects. First, we propose an audit quality framework that includes all the factors indicating the level of the external audit's quality (Auditor-related indicators; Audit-process indicators; Output indicators). Second, we present a review on the output indicators of audit quality (auditor's report, bankruptcy, client satisfaction, auditor litigation and expectation-gap). Thirdly, we draw on the results of previous literature and provide suggestions for future research.

KEYWORDS
Audit Quality, Auditor's Report, Bankruptcy, Client Satisfaction, Auditor Litigation, Audit Expectation-Gap

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Amine El Badlaoui , Mariam Cherqaoui , Omar Taouab , "Output Indicators of Audit Quality: A Framework Based on Literature Review," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1405 - 1421, 2021. DOI: 10.13189/ujaf.2021.090619.

(b). APA Format:
Amine El Badlaoui , Mariam Cherqaoui , Omar Taouab (2021). Output Indicators of Audit Quality: A Framework Based on Literature Review. Universal Journal of Accounting and Finance, 9(6), 1405 - 1421. DOI: 10.13189/ujaf.2021.090619.