Factors influencing audit quality in Bangladesh

Abstract

This report titled “Factors Influencing Audit Quality in Bangladesh” is an outcome of BBA internship program. It tries to understand the factors that should be considered during auditing. This paper contains two parts. The first chapter of the report starts with the overview of ACNABIN Chartered Accountants, a CA firm where I have completed my intern. A brief organization history is described at the beginning. After that, company’s mission and vision statement is mentioned and explained in brief. As ACNABIN is a CA firm, it provides a wide range of services to its clients. The services it provides to its clients are also summarized. The first chapter ends with the methodology and limitation of the report. The second chapter starts with the definition of audit, audit quality, and the short history of forming accounting regulatory bodies. Then, the importance and expectation of audit quality is discussed concisely. After that, I have added the review of various journal papers and books related to the topic. After reading the literatures, I have added hypothesis that reflects the literature review or my own assumption. Descriptive statistics is used to analyze and interpret the data. Like other research reports, it is found that auditor firm size and auditor competencies positively influence audit quality. Even though it was presumed that provision of NAS services can have negative impact on quality, the study has found no negative influence. Finally, it’s been revealed that the long audit tenure impairs auditor independence by creating over familiarity between auditor and client. After analyzing findings, conclusion and recommendation for further study is given.