Faulty Audits Threaten Financial Stability, Demand Competent Auditors
The article reviews research on how audits can help ensure accurate financial reports. Different measures are used to assess audit quality, but there is a need for clearer guidelines. Audit quality is influenced by a company's characteristics and financial systems. Current models need better guidance to separate audit quality from financial reporting quality. More research is needed on how auditor and client skills impact audit quality.