AQI-Matrix Approach to Transforming External Inspection Results into an Audit Quality Risk Management System

The inspection results compiled by public oversight bodies constitute substantial evidence of recurring deficiencies in quality management systems, audit engagement performance, and compliance with legal requirements. However, without an appropriate methodological interpretation, such results often remain statements of identified deficiencies and are not always translated into a coherent system of management responses within audit firms. The article aims to substantiate an AQI-matrix approach to transforming external quality inspection results into a system for managing audit quality risk management. The research methodology includes content analysis of academic and regulatory sources, comparative analysis of audit quality assessment approaches, classification analysis of external inspection findings, analytical generalization, and matrix modeling. The article proposes a logical sequence for transforming external inspection results into identified audit quality risks, grouping them by functional levels, assessing them through AQI components, and determining appropriate management responses. The scientific novelty of the study lies in the improvement of the organizational and methodological approach to managing audit quality risk management. Unlike approaches that treat external inspection results mainly as evidence of non-compliance, the proposed approach uses them as an empirical basis for developing an AQI risk matrix, ranking risks, and prioritizing audit firm management actions. The practical significance of the results lies in the possibility of applying the proposed approach to internal monitoring of quality management systems, planning staff training, revising audit methodology, and controlling the implementation of corrective actions. The AQI-matrix approach does not replace professional judgment and should not be interpreted as a rating mechanism for audit firms; rather, it is a tool for risk prioritization and continuous improvement of audit quality management. The proposed approach also provides a basis for linking external inspection findings with internal quality management responses, including methodology revision, targeted staff training, enhanced engagement monitoring, and control over corrective actions. This makes it possible to use external oversight results not as a final statement of deficiencies, but as an input for continuous improvement of the audit firm's quality management system.