Developing the Audit Quality Measurement Model Using Structural Equation Modeling

Document Type : Original Article


Department of accounting, Damavand Branch, Islamic Azad University, Damavand, Iran


The purpose of the present study is to investigate the factors affecting audit quality.  For this purpose, the concepts of audit quality were extracted using the proposed conceptual model. The factors affecting audit quality, including policy-making, supervision, and operations (including the categories of input, process, and output), were identified by a systematic approach. The dimensions of supreme council independence, financial reporting requirements, audit institutions' size, industry auditor, audit fees, corporate governance system, stockbrokers or non-stockholders, thought-based auditing, formulating various industry guidelines, auditors' perceptions of governance, the use of information technology, and the establishment of a professional supervisory body constitute the conceptual model of audit quality.
After identifying and designing the primary model, a questionnaire was developed and distributed among the audit firm's partners. The audit quality measurement model was designed using Structural Equation Modeling, and the research hypotheses were identified.
According to the research results, the audit quality has a moderate positive and significant relationship with the audit profession's policy-making factors and a strong positive and significant relationship with the audit operations. Also, in terms of the operational factors, the audit quality has a strong positive significant relationship with the input, and a strong positive significant relationship with processes, and a moderately significant positive relationship with the output; finally, the audit quality has a moderately positive and significant relationship supervisory factors.
To date, the empirical evidence that justifies the validity of the influence of the factors such as policy making, supervision, and operations (including the categories of input, process, and output) all together on the development of the audit quality measurement modelin Iran has not yet to be found. 


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