Explanation and validation of the audit quality improvement model with the approach of focusing on internal and external components in Iran

Document Type : Original Article


1 PhD Student, Department of Accounting, Faculty of Humanities, Islamic Azad University, Qaemshahr Branch, Qaemshahr, Iran.

2 Assistant Professor and Scientific Members of the Department of Accounting, Faculty of Humanities, Islamic Azad University, Qaemshahr Branch, Qaemshahr, Iran

3 Assistant Professor and Scientific Members of the Department of Accounting, Faculty of Humanities, Islamic Azad University, Qaemshahr Branch, Qaemshahr, Iran.


The recent financial crisis has highlighted the need to pay more attention to the role of audit quality in improving financial reporting, while achieving audit quality requires an integrated approach and consideration of its various layers. Therefore, the present study utilizing combined approach, in the first part, uses the data theorizing method and the theoretical and purposeful sampling method as well, through in-depth and structured interviews with 17 academic experts and senior managers of finance, accounting and auditing, tries to identify and explain the factors affecting the improvement of audit quality and presented it in the form of audit quality model. Then, in the second step (quantitative part of the research), the obtained model is fitted and validated using the structural equation model and PLS software. At this stage, the data collection tool was a closed questionnaire with Likert scale and the statistical population studied, senior financial managers, accounting and auditing of the top active companies listed on the Tehran Stock Exchange. The results of research confirm the positive and significant effect of the research variables and thus verifies the proposed model. Therefore, it can be acknowledged that with the improvement of internal and external environmental factors in the audit environment, the quality of audit reports also will be improved.


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