New international framework takes broad look at audit quality


A new international framework for audit quality takes a broad look at how the stakeholders in the audit process can work to make audits better.

The International Auditing and Assurance Standards Board (IAASB) released Tuesday a framework that is designed to encourage auditors, audit clients, audit firms, regulators, and others to increase audit quality in their environments and create more dialogue between them on audit quality.

“While responsibility for performing quality audits of financial statements rests with auditors, audit quality is best achieved in an environment where there is support from and appropriate interactions among participants in the financial reporting supply chain,” IAASB Chairman Arnold Schilder said in a news release.

The framework:

  • Describes the input, process, and output factors that affect audit quality at the engagement, firm, and national levels.
  • Describes the importance of appropriate interactions between parties in the audit process and how these interactions can improve audit quality and the perception of audit quality.
  • Shows how audit quality can be affected by factors such as laws and regulations; the litigation environment; corporate governance; and the financial reporting framework.

“Our hope is to see continued dialogue on the topic, and that active use of the framework by various stakeholders will result in positive actions in the public interest to achieve a continual improvement to audit quality,” James Gunn, the IAASB’s technical director, said in a news release.

Ken Tysiac ( ) is a JofA senior editor.


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