SMALL AUDIT FIRMS AND AUDIT PRACTICE QUALITY CUE

file:///A:/92swi211.txt Page 1 of 10SMALL AUDIT FIRMS AND AUDIT PRACTICE QUALITY CUE IMPORTANCE Suzanne N. Cory Saint Mary's University ABSTRACT There is ample evidence in the literature that audit practice quality is an important issue. Previous researchers have attempted to equate audit quality directly with audit firm size. However, research results have been mixed. This paper examines responses from audit partners from non-national and national audit firms regarding the relative importance of twelve attributes of audit practice quality. Seven of the twelve attributes are ranked differently between these two sectors of public accounting. INTRODUCTION Both the professional and academic accounting literature indicate that quality of public accounting practice is a current issue of importance to academicians, public accountants, public policy makers, and professional associations such as the American Institute of Certified Public Accountants (AICPA). The United States General Accounting Office (GOA) established and Audit Quality Task Force in 1984. The Task Force's findings were dismal. "One out of every five audits that the [regional inspectors general] quality control reviewed was not accepted until the auditor (1) performed more audit work, (2) clarified work performed, or (3) provided more support for the audit work performed. A few were in fact never accepted" [7, p. 16]. Audit quality was also one of several issues addressed by the ...