Dikuua, M.B., Maroun, W. orcid.org/0000-0001-7448-1220, van Zijl, W. et al. (1 more author) (2023) Audit regulation and its relevance for audit quality in Namibia. South African Journal of Economic and management Sciences, 26 (1). a4866. ISSN 1015-8812
Abstract
Background: Corporate scandals have resulted in decreasing levels of confidence in the audit profession so that audit quality is under finer scrutiny.
Aim: This article has explored the role external audit regulation in Namibia plays in ensuring the quality of its financial statement audits.
Setting: The opinions of audit and regulation experts in Namibia were examined.
Method: A mixed-method approach, grounded in an interpretive epistemology, was employed. A correspondence table was developed, using the current literature. The opinions of audit and regulation experts on the effect that external regulations have on audit quality were then sought, using correspondence analysis and interviews.
Results: The primary themes of audit quality from a regulatory perspective are maintaining independence and consulting on complex audit matters, the employment of competent members in the engagement team and a culture of quality, driven by firm leadership. It is further revealed that administrative functions play a vital role in contributing to the quality of an audit.
Conclusion: A conceptual model, linking regulation and audit quality, is presented. Independence is considered the cornerstone of the audit profession, while regulations are relevant to independence. Regulators may consider introducing measures such as rotation of audit firms or the disclosure of audit tenure in annual financial statements.
Contribution: This is the first research of its kind in Namibia. It is helpful to regulators and audit practitioners because it allows them to gain a better understanding of whether the current regulations adequately enhance audit quality, instead of being perceived as a ‘tick-box’ exercise.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 Miriam Berenice Dikuua, Warren Maroun, Wayne van Zijl, Asheer Jaywant Ram | This work is licensed under CC Attribution 4.0. |
Keywords: | audit quality; external regulation; International Standard on Quality Control 1 (ISQC 1); Namibia; Public Accountants’ and Auditors’ Board (PAAB); Institute of Chartered Accountants of Namibia (ICAN) |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 06 Feb 2024 13:09 |
Last Modified: | 06 Feb 2024 13:09 |
Published Version: | https://sajems.org/index.php/sajems/article/view/4... |
Status: | Published |
Publisher: | AOSIS |
Identification Number: | 10.4102/sajems.v26i1.4866 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:208768 |
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