March 18, 2026The Accounting Review
Determinants of Audit Quality in the Public Sector.
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Implication
This investigation reveals factors influencing audit quality in independent CPA firms, indicating key influences on reliability.
Key Points
- The study aims to identify and analyze the determinants of audit quality within independent CPA firms that audit school districts.
- Analyzed quality control review (QCR) findings from the Texas Education Agency (TEA) between 1984 and 1989.
- Conducted regression analysis using numerical scores from QCR letters to measure audit quality.
- Collected data on reputation effects, power conflict, report timeliness, audit hours, and reported breaches.
- Found that audit quality definitions explain variations within audit size categories.
- Confirmed a relationship between audit quality and audit report timeliness as well as actual audit hours.
- Identified that audit hours serve as a valid proxy for measuring audit quality when direct measures are lacking.
Cite This Study
Deis et al. (1992) studied this question.