Audit quality and independence concerns after major audit reforms within a developing country: stakeholder perceptions from Vietnam

Lan Anh Nguyen, Michael Kend and Hoa Luong

Managerial Auditing Journal, 2022, vol. 38, issue 3, 314-335

Abstract: Purpose - The purpose of this exploratory study is to investigate the perceptions of key stakeholders in Vietnam on the impact on audit quality and independence after major reforms to audit. Design/methodology/approach - Using new institutional sociology, this study seeks to explain how Vietnamese external auditors and accountants have responded to audit reforms and provides perceptions on how audit quality and independence may have been impacted. This study draws on semi-structured interviews conducted with 33 highly experienced participants, representing various stakeholder groups in Vietnam. Findings - The findings indicate that after almost a decade since the full implementation of the Law of Independent Audit (2011) in Vietnam, the audit and assurance market in Vietnam is characterised by low quality audits, a lack of compliance with standards and auditor independence concerns, specifically amongst the smaller audit practitioners. Participants indicated that competition for new audit clients or retaining existing clients is a priority over improving audit quality and independence. Originality/value - By examining a combination of different factors relating to audit quality and independence, the authors further demonstrate the impact of these factors in Vietnam, helping audit professionals and regulators to have a better and more meaningful understanding of that state of the audit profession. This study also considers audit concerns or issues arising because of the COVID-19 pandemic in Vietnam.

Keywords: Audit quality; Audit independence; Audit competence; COVID-19; M42; M48 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-03-2022-3475

DOI: 10.1108/MAJ-03-2022-3475

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