Title: High-quality auditors vs. high-quality audit: the reality in Oman

Authors: Saeed Rabea Baatwah; Zalailah Salleh; Norsiah Ahmad

Addresses: Department of Accounting, Hadhramout University, Seiyun, Hadhramout, Yemen ' Department of Accounting and Finance, Universiti Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia ' School of Accountancy, Universiti Sultan Zainal Abidin, Kuala Terengganu, Terengganu, Malaysia

Abstract: The objective of this study is to explore the unique setting of Oman with respect to audit quality. This study measures the quality of audit by examining whether big-4 audit firms and industry specialist auditors have a role in improving the quality of the audit. We use data from the companies listed on the Oman capital market between 2006-2013. Using a panel data approach and two measures of audit quality for the purpose of this study, we find that the audit quality of big-4 audit firms and industry specialist auditors is low because they do not enhance the quality of discretionary accruals and do not have a propensity to issue going-concern audit opinion. We also document that big-4 audit firms and industry specialist auditors consider that religion and risk factors provide the means for achieving high-quality audit. This paper is different from prior studies because it is the first to comprehensively examine audit quality in a unique setting - the Gulf Cooperation Council (GCC). Furthermore, it extends our understanding of the role of religiosity in audit quality.

Keywords: audit quality; earnings management; going-concern opinion; big-4 audit firms; industry specialist auditors; Oman.

DOI: 10.1504/AAJFA.2018.093462

Afro-Asian Journal of Finance and Accounting, 2018 Vol.8 No.3, pp.209 - 236

Received: 15 Dec 2016
Accepted: 24 Aug 2017
Published online: 26 Jul 2018 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article