Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Factor Affecting Audit Quality: A Study of the Companies Listed in Bombay Stock Exchange (BSE)

Author(s): Dr. Vineet Chouhan, Dr. Raj Bahadur Sharma, Dr. Shubham Goswami, Dr. Sajid Ali.

The research study aims is to explore the factors of audit quality (AQ) by allowing input from internal and external auditors, finance managers, accountants and chief financial officers (CFO’s).This study also attempt to identifying the major attributes that contribute to determining the Audit Quality.For the study survey method has been adopted and random sampling techniques were used for collecting data fromauditors, finance managers and CFO’s. The data has been collected from 500 companies listed in Bombay Stock Exchange (BSE). The survey questionnaire consists of scale items for fiscal and broad-spectrum supervisory aspects influencing AQ, perception regarding criteria decided by the Board of Auditing Practices and influence of activities of Audit Quality. The result revealed that the Audit Quality is dependent upon factors like economic-risk, audit-committee experience, communication, audit firm’sethics, regulatory actionrisk, auditor’seconomic independence, theircompanionreputation and client lossrisk.The exploratory factor analysis (EFA) results proves that out of 38 quality attributes to only 8 factors affecting the Audit Quality of BSE listed companies, which are further confirmedby confirmatory factor analysis (CFA). In the Audit context, the research study would be helpful in preventing various financial scams,white collar crimes and enhancing the Audit Quality.

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