Development of Audit Quality Indicators to Enhance Audit Quality of Thai Audit Firm to Universal Standard

Abstract

Development of Audit Quality Indicators is objected to be significant instrument to enhance audit quality of Thai audit  firm in evaluating empirical audit quality, helping in decision making of the financial report quality and enabling to use in evaluating audit firm. The study guide for this research wastaken from the Universal Audit Quality Framework. The researcher also applied the concept of Balanced Scorecard covered elements of TSQC1 6 sides by using quantitative measurement supported with the qualitative information which encouraged for input, process and output qualities. The Connecting indicators from six institutes in foreign countries were used for drafting the definition of twenty-six indicators of Thai Audit Firm in Thailand in four perspectives measurement. These four perspective measurement were (1) financial perspective measured output quality, (2) learning and development perspective measured input quality of leadership for responsibilities, ethical and human resource requirements, (3) Internal business process perspective measured the quality of process, performance, and monitoring, and (4) customer perspective measured output quality of performance, client acceptance and continuance. The assessors for indicators should be the audit committee to bring the results of the audit quality assessment to use in supervision and selection of suitable audit firm.  Besides, the results should be used as benchmark with better audit firms in local and foreign countries to establish competition of audit quality.  This was to create confidence to supervisors, local and foreign investors for the quality of financial report and enhance audit quality of Thai audit firm to universal standards.