Audit quality may be affected by several factors which can be simply divided into the auditor specifications and auditing process attributes

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Audit quality may be affected by several factors which can be simply divided into the auditor specifications and auditing process attributes. Hence, such factors can directly affect the “audit opinion” which is issued to state the reasonable assurance on financial statement reliability thereby enhancing the confidence of the market. Despite the unclear definition, importance of the audit quality and its influence on market confidence has been highlighted by regulators, investors and corporate governance. As stated in “agency theory”, auditor’s opinion certifies the assurance for third parties, who are using the financial statement (Lindberg, 2001). Audit quality has been defined as auditor’s ability on discovering the material misstatement and reports them (DeAngelo, 1981). So, it has implicit the necessary competence and professional behavior along the auditing process, as well as auditor’s independence and objectivity to assure that the outcome (audit report) reflects the adequate opinion.
It must be stated that audit quality is becoming more attractive among other related auditing subjects, due to its considerable impacts on the reliability of the financial statements. Moreover, enhancing the confidence of the financial statement users can be considered as the result of higher audit quality. Hence, through a brief review, we aimed to provide the reader with the principal concepts and recent findings regarding the audit quality criteria. For this, the next part of the paper has aimed to provide some definitions followed by the main theories of the audit quality. Then, the significance of the audit quality factors has been the subject for further discussion to magnify its effects on the audit quality by the last section of the present manuscript. It is hoped that the results arising from this study can be beneficial for the audit committee members, regulators, shareholders and academic users who are interested in the investigation of the significant role of the mentioned factors during the auditing process as well as preparation of the related statements.

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