 For better or worse: A study of auditors' practices under Auditing Standard No. 7Denise Dickins, Rebecca Fay and Brian Daugherty Research in Accounting Regulation, 2015, vol. 27, issue 2, 174-186 Abstract: The PCAOB's Auditing Standard No. 7 (AS No. 7) revised guidance for Engagement Quality Reviews (EQRs). To better understand the impact of resulting changes in practice, if any, that have occurred in the nature, extent, and timing of the EQR process, and the impact of such changes on audit quality, we surveyed practicing audit partners familiar with EQRs. Results indicate that AS No. 7 changed the nature of EQRs by impacting the role and approach of the EQ Reviewer. It impacted the extent of procedures performed by the EQ Reviewer and altered communications between the EQ Reviewer and most engagement team members, but it had little impact on the timing of EQRs. Collectively, results suggest AS No. 7 changed EQRs, but such changes may not have improved audit quality. These findings provide insight to the continuing conclusion of the PCAOB that many EQ Reviewers do not fulfill their role of monitoring audit quality, and are also suggestive of opportunities to improve the EQR process. Keywords: Engagement quality review; Auditing Standard No. 7; Audit quality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:27:y:2015:i:2:p:174-186 DOI: 10.1016/j.racreg.2015.09.008 Access Statistics for this article Research in Accounting Regulation is currently edited by G. Previts More articles in Research in Accounting Regulation from Elsevier |
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