The main factors affecting the quality of the external audit in the UK Dissertation

The main factors touch on the quality of the away take stock in the UK - thesis ExampleThis therefore requires an improvement in the quality of the outdoor(a) examine and how it can be ameliorate in order to ensure that the external audit could help to safeguard the interests of different stakeholders. This topic is most-valuable in the sense that it can help to identify, within specific context of UK, some of the factors which can hand towards improving the quality of the audit. Investors and shareholders can be more assured about the overall credibility of the audit and what factors they can look into when assessing the overall quality of the audited financials. Researcher aims to explore the overall nature and the extent of factors touch on the quality of the external audit. On a broader level, this research study will explore different concepts tie in with the quality of the audit, identification of different methods which are used to improve the quality of external au dit as well as the quality and nature of the impact of such factors on the overall quality of the external audit in UK. ... (Causholli & Knechel, 2009) As such when a conflict of interest arises between agent and the principal, agents whitethorn take actions which may not be entirely in the best interests of the principals. In order to set apart that gap, a financial reporting mechanism is prepared which is duly supported by the independent external auditors to ensure that the financial reporting made by the management is free from errors and frauds. The overall concept of audit quality therefore is linked with how well the function of external audit is successful in foreground and detecting material errors in the financial statements while at the same time reduce the randomness asymmetry between the shareholders and management of the firm. Underlying the concept of external audit is also the reduction of the education asymmetry between the shareholders and the management of the firm. Preparation of financial statements is one of the key functions management has to perform in order to inform the shareholders and other stakeholders about the overall performance of the firm during given period of time. As such, it is through the financial statements that the management informs the shareholders regarding the overall quality and effectiveness of the management as the same has to transubstantiate into better financial position and profitability for the firm. Reducing the information asymmetry therefore can except improve the credibility of the financial statements but also provide a third party warrant that the financial statements are prepared in true and fair nature. The concept of Audit quality and factors affecting it Audit quality is one of the much