Quality of accounting audit in Albania, perceptions of accounting experts and members of audit committees

AuthorElsa Tanushi
PositionUniversity of Tirana
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Vol. 3 No. 1
January, 2019
ISSN 2519-1284
Acces online at www.iipccl.org
Quality of accounting audit in Albania, perceptions of accounting experts and
members of audit commi ees
Elsa Tanushi
University of Tirana
The purpose of this paper is to provide insight into the way in which the concept of audit
quality is perceived. In particular, the paper focuses on the viewpoints of the parties involved
in the audit market, such as the auditors and members of the Audit Commi ee of the audited
companies, which have available the relevant information and technical knowledge to
properly assess the quality of the audit. The paper examines the way in which the quality
of the audit is perceived and the way, in which it is displayed, which actions, symbols and
behaviors auditors/audit rms present to third parties that have a proper audit quality. The
study shows that respondent’s groups perceive a good level of audit quality, though not the
maximum, and that the perception of the quality of the audit is consistent between the two
surveyed parties. Also, research indicates that audit rms and auditors use di erent symbols
and behaviors to communicate to the market that apply proper audit quality. In general, the
ndings of the paper can be considered important for the stakeholders, for audit engagements
and for academic researchers wishing to develop a deeper understanding of this contribution.
Keywords: perceived audit quality, social context, audit commi ee, EDF, behavior and symbols.
JEL code: M42
There are di erent actors involved in the audit process, auditors, audit commi ee
members, audited company management, investors and regulators. Each of these
groups may a ect the auditor's decisions, and each may have di erent opinions
on what constitutes a qualitative audit. My contribution to the relevant literature
in Albania is the analysis of the perceptions of some of the parties involved in the
audit process, the level of quality of the current audit, and the manner in which
this audit is performed by auditors / audit companies. All this taking into account
the social, legal and cultural context in which the profession of auditor is exercised.
To understand the audit, it is useful to rst understand the reasoning behind the exercise
of this profession and the role of external auditors. Company audits exist due to the
division between ownership and control of societies in the modern economy where
shareholders or partners have given resources to managers in order to maximize their
wealth. Since there is the presence of opportunistic managers who may not report the
true state of the company's performance, which can cause loss to the owners, the role
of auditors has as a consequence impact on reducing agency costs due to information
asymmetry and interests between the two above mentioned parties. For this reason,
the agency's theory, which concerns the control and asymmetry of information
between shareholders and managers, is normally used to legitimize the importance

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