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Evaluating Regulatory Initiatives Directed at Audit Firms to Improve Audit Quality

Evaluating Regulatory Initiatives Directed at Audit Firms to Improve Audit Quality

Dr Elizabeth Carson, Prof Roger Simnett, Prof Neil Fargher and Prof Ann Vanstaelen

As a result of significant concerns expressed by regulators and other market participants about the quality of audits, there has been significant regulatory emphasis on the process of independent inspections of audit firms' quality controls in Australia and internationally.  Inspections of audit firms have become the first ' weapon of choice' of regulators in the drive to improve audit quality and avoid corporate failure.  This proposal examines the extent to which inspections have an incremental effect on audit quality.  Thus we examine the efficiency of the inspection regimes in effect in Australia and internationally and provide insights to regulators and standard setters as to how to direct future improvements in this critical area.

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Updated:   18 February 2017 / Responsible Officer:  CBE Communications and Outreach / Page Contact:  College Web Team