Title: Monitoring audit quality and firm resources of audit firm practices in Malaysia: the implementation of ISQC 1

Authors: Aida Hazlin Ismail; Takiah Mohd Iskandar; Zuraidah Mohd Sanusi; Zaleha Abdul Shukor

Addresses: Faculty of Accountancy, Universiti Teknologi Mara, Shah Alam, Selangor, Malaysia ' Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia ' Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia ' Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

Abstract: Audit quality is the core of business strategy and key driver of success for audit firms. With the adoption of International Standard Quality Control (ISQC 1), the Malaysian Institute of Accountant (MIA) is enforcing quality control for all audit firms in Malaysia. Semi-structured interviews were conducted for four discussion groups comprised of audit seniors, managers and partners of Big 4 and non-Big 4 audit firms. This research paper reports an exploratory study on the implementation and acceptance of ISQC 1. Results indicate that small audit firms in Malaysia are prepared with the implementation of ISQC 1. However, acceptances vary between the Big 4 and non-Big 4 audit firms. Results also indicate that working experience of the auditors, professional qualifications; education background and on-the-job trainings, and job performance appraisals, do have an effect on audit quality. Hence, the audit firm resources such as human resource characteristics are important in ensuring quality audit work.

Keywords: audit quality; firm resources; ISQC 1; qualitative; auditors; human resource characteristics; resource-based view theory.

DOI: 10.1504/IJMP.2018.092858

International Journal of Management Practice, 2018 Vol.11 No.3, pp.335 - 351

Received: 02 Jan 2017
Accepted: 05 Sep 2017

Published online: 24 Apr 2018 *

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