Question

list factors that might affect an audit firm's client portfolio

Auditing (11th edition)

Answer 1

factors that might affect an audit firm's client portfolio

1.Audit firm size

Large audit firms earn more revenue because they reduce their clients' exposure to prosecution because of having more experience. The size of the audit firm is one of the most important factors affecting the measurement of audit quality, as it is positively related to the quality of audit, where audit firms often provide better audit quality than other audit firms do.

2. Auditor’s independence: The auditor's independence is one of the key pillars that are closely related to audit quality, which in turn requires auditing firms to improve professional performance. The auditor's independence may be considered intellectually or intellectually, in the sense that the auditor must be independent in his or her opinion and opinion in the financial statements. He must express his opinion on the financial statements fairly and honestly, and not allow any important considerations that affect his opinion.

3.Competition among audit firms

The auditing profession operates in an open market as it is in the rest of the professions based on the competition among its members to attract customers, especially with the increase in the number of audit firms and the number of licensed auditors practicing the profession. Due to the importance of the competition among audit firms and its impact on audit quality, it has received wide attention from professional organizations.

4.Professional requirements

5.Skills and efficienc

6. Audit firms should develop guidelines and programs that ensure continuous professional development and assign professional development to a person or group of persons with appropriate authority.

7. Following-up of the programs established by the audit institution and the objectives and basic requirements for education or experience as well as the preparation of a new orientation program for new individuals.

8. Encouraging individuals to prepare articles and participate in other professional activities.

9. Delivering information to employees on current developments in professional and technical standards governing the profession.

10. Updating training programs as needed and in light of new developments and changing circumstances while maintaining a file containing professional publications and books on technical and professional matters.

11.Distribution of tasks

12.Supervision

13.Acceptance and customer retention