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Quality dimensions in external audit services- an external user perspective

Author

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  • Bent Warming-Rasmussen
  • Lars Jensen

Abstract

A particular characteristic of auditing is that it is aimed at a heterogeneous group of stakeholders with occasionally diverging interests. This makes it even more relevant, though complicated, to determine exactly what users regard as quality. Based on empirical research, this paper investigates how two external user groups (shareholders and financial journalists) perceive audit quality, and analyses whether managing directors (preparers) and public accountants (auditors) evaluate the salient quality attributes differently. The overall results are as follows. (1) External users tend to perceive audit quality attributes as attributes that also inspire confidence in the auditor. (2) A number of different quality attributes can be summarized under six main quality dimensions. These dimensions mainly concern moral and ethical aspects. (3) The four groups of respondents (shareholders, financial journalists, managing directors and public accountants) assign significantly different values to these quality dimensions.

Suggested Citation

  • Bent Warming-Rasmussen & Lars Jensen, 1998. "Quality dimensions in external audit services- an external user perspective," European Accounting Review, Taylor & Francis Journals, vol. 7(1), pages 65-82.
    • Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:65-82
    DOI: 10.1080/096381898336583
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    References listed on IDEAS

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    1. Wilcox, Kirkland A. & Smith, Charles H., 1977. "Role discrepancies and the auditor-client relationship," Accounting, Organizations and Society, Elsevier, vol. 2(1), pages 81-97, January.
    2. Craswell, Allen T. & Francis, Jere R. & Taylor, Stephen L., 1995. "Auditor brand name reputations and industry specializations," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 297-322, December.
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    Cited by:

    1. David Carassus & Khaled Albouaini & Marie Caussimont, 2013. "Une analyse de l'Audit Expectation Gap dans le contexte français," Post-Print hal-02432110, HAL.
    2. Olivier Herrbach, 2001. "Audit quality, auditor behaviour and the psychological contract," European Accounting Review, Taylor & Francis Journals, vol. 10(4), pages 787-802.
    3. Olivier Herrbach, 1999. "Qualité et réduction de qualité en audit financier : le comportement des collaborateurs de cabinets," Post-Print halshs-00587761, HAL.
    4. Alan Kilgore & Renee Radich & Graeme Harrison, 2011. "The Relative Importance of Audit Quality Attributes," Australian Accounting Review, CPA Australia, vol. 21(3), pages 253-265, September.
    5. Beattie, Vivien & Fearnley, Stella & Hines, Tony, 2010. "Factors Affecting Audit Quality in the 2007 UK Regulatory Environment: Perceptions of Chief Financial Officers, Audit Committee Chairs and Audit Engagement Partners," SIRE Discussion Papers 2012-29, Scottish Institute for Research in Economics (SIRE).
    6. Emna Ben Saad & Cédric Lesage, 2009. "Perception De L'Indépendance De L'Auditeur : Analyse Par La Théorie D'Attribution," Post-Print halshs-00460618, HAL.
    7. Gultom, Juan Barus & Murwaningsari, Etty & Umar, Haryono & Mayangsari, Sekar, 2021. "Reciprocal Use of Artificial Intelligence in Audit Assignments," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 11(1), pages 9-20.
    8. Angus Duff, 2009. "Measuring audit quality in an era of change: An empirical investigation of UK audit market stakeholders in 2002 and 2005," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(5), pages 400-422, May.
    9. Tansey, R. & Carroll, Ray F. & Jun Lin, Z., 2001. "On measuring cost of quality dimensions: An exploratory study in the People's Republic of China," International Business Review, Elsevier, vol. 10(2), pages 175-195, April.
    10. X. Walthoff-Borm & L. Chalmet, 2013. "Behind closed doors: the potential of lean management in safety audit services," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/838, Ghent University, Faculty of Economics and Business Administration.

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