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This systematic review uncovers the link between audit practices and performance outcomes, suggesting key factors like audit committees and external audits enhance effectiveness.
Audit and performance are two closely related concepts that are attracting increasing interest in management and finance research. While the aim of auditing, whether internal or external, is to ensure the conformity, transparency and reliability of financial information, organizational performance reflects a company's ability to achieve strategic and financial objectives. Most importantly, audits are not simply regulatory requirements; they are strategic processes that, when properly integrated into corporate governance, promote the growth and sustainability of organisations. The objective of this study is to explore the link between audit practices and performance, identifying the key dimensions that contribute to performance outcomes. To achieve this, we conducted a systematic review of the literature published between 2014 and 2024 using PRISMA guidelines to ensure the credibility of our results. We applied predefined inclusion and exclusion criteria to identify relevant publications, resulting in an initial selection of 113 articles. After removing duplicates, 76 articles remained. Following a detailed analysis of abstracts, a final selection of 33 articles was retained. The study highlights the role of audit committees, internal audit quality, and external audit practices in improving financial performance. Specifically, key factors influencing audit firm performance include the experience and professional knowledge of auditors and the effectiveness of audit committees. Also, firms audited by big Four tend to achieve higher operational effectiveness due to improved credibility and transparency. Additionally, the findings suggest that firms can enhance expanding the financial expertise of audit committee members and by engaging high-quality audit firms, such as the Big Four, to strengthen investor confidence. Finally, continuous improvement in audit practices, regulatory frameworks and corporate governance structures is essential to maximize the positive impact of auditing on business performance.
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Hassouni et al. (2025) studied this question.
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