Question

1. Distinguish between the terms ‘Audit Quality’ and “Quality Audit” from the perspectives of

1. The Academician; and
2. The Regulator and Practitioner of the Accounting Profession

Answer 1

Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team. It is an important part of organization's quality management system and is a key element in the ISO quality system standard, ISO 9001.

OR

A quality audit is a process by which you review and evaluate an element of your business to ensure that you're meeting certain standards.

1. It is believed that to achieve quality audit, quality auditing standards must be complied with and the auditor’s compliance with these quality standards will largely depend on the auditor’s resources at his disposal and how effectively he is monitored by his profession’s regulator.

Required:

With empirical evidence,

1. Examine the factors influencing the level and extent of compliance with audit quality standards (ISA 220 and ISQC 1) by auditing firms in Ghana.
2. Evaluate the impact of the regulator’s monitoring on compliance with audit quality Standards in any developing economy of your choice;
3. Assess the effect of the auditor’s audit resources on audit quality;