1. Home
  2. Volume 7 (Issue 2)
  3. Audit Quality Research: A Comprehensive Review of Measurements, Determinants, and Future Prospects
Article Image
Zohair Farooq Malik, Burhan Rasheed, Syed Taha Fraz Haider Kazmi, Numan Aslam

Audit Quality Research: A Comprehensive Review of Measurements, Determinants, and Future Prospects

Audit quality (AQ) remains a central concern for regulators, practitioners, investors, and researchers due to its critical role in enhancing the credibility and reliability of financial reporting. Despite the extensive growth of audit quality research over the past two decades, the literature remains fragmented regarding the determinants, measurement approaches, and contextual factors influencing audit quality. This study provides a comprehensive systematic review of archival audit quality research published in leading accounting, auditing, and finance journals between 2001 and 2020. Guided by the International Auditing and Assurance Standards Board (IAASB) Audit Quality Framework, the review examines publication trends, key research themes, determinants of audit quality, measurement proxies, and potential avenues for future research. A total of 234 articles were initially identified from ABDC-ranked A* and A journals, of which the most relevant archival studies were analyzed. The findings reveal a substantial increase in audit quality research during the period 2011–2020, accounting for more than 70% of total publications. The review indicates that most studies focus on input-related factors such as auditor independence, audit fees, auditor tenure, audit firm size, industry specialization, and auditor expertise. Output-based measures dominate literature, with discretionary accruals, financial reporting quality, restatements, and modified audit opinions being the most frequently employed proxies of audit quality. In contrast, process-related measures such as audit effort and audit adjustments receive comparatively limited attention. The findings further demonstrate that regulatory environments, corporate governance mechanisms, and audit industry structures significantly influence audit quality outcomes. The study contributes to the auditing literature by synthesizing existing evidence, identifying underexplored dimensions of the IAASB framework, and proposing future research directions related to audit processes, stakeholder interactions, technological advancements, and emerging regulatory challenges. The review offers valuable insights for researchers, standard setters, regulators, and practitioners seeking to enhance audit effectiveness and strengthen confidence in financial reporting.