47
magazine
ALRAQABA
Chapter (1):
Research
Methodology
Research introduction:
This research is a re-
sponse of the State Au-
dit Bureau of Kuwait
interest in the subject
matter as it represents
one topic among many
others that require re-
search and analysis that
are included within the
Annual Competition for
Scientific Research. This
research study is divided
to 8 chapters, the fol-
lowing one includes the
accounting opinion lit-
erature relating to audit
quality as discussed by
the researches. While the
third chapter represents
quality concept, and its
types, then the fourth
chapter discusses the
system and quality meth-
ods of the audit. The fifth
chapter discusses the
international standards
of audit quality, while the
sixth chapter is about the
SAIs experience in the
audit quality control. The
seventh chapter is about the activation of SAB
role in the management and development of au-
dit quality control. Finally, the eighth chapter dis-
cusses field study, results and recommendations.
Quality concept, types, and principles:
Audit procedures and operations have devel-
oped from traditional to modern methods based
on publications of the professional associations
in USA and Europe. The most important are the
planning and implementation of audit activities,
whrer the audit department focus is addressed to
the most hazardous areas that are considered of
a great importance.
Quality concept must be identified from two an-
gles, the general concept of quality as of the level
of the operational processes performance in all of
their financial, administration, technical scopes,
and other sides that end with an output, product,
or service for the beneficiary parties. The other
concept relates the SAIs performance inside and
outside the administration or economic unit, such
as reaching high level of assurance regarding the
preciseness and accuracy of the operational pro-
cesses financial data.
The application of the quality concept is the re-
sponsibility of independent supervisory parties
within the organization, such as the internal audit
office, or the external audit e.g. the auditors of the
control entities, SAB auditors, or the external au-
ditors of the economic organizations. Therefore,
definitions of quality should be presented accord-
ing to the said concepts. Based on the aforemen-
tioned, , the quality of the productions and the
service performance is defined as “ a set of audit
techniques and quality specifications , utilized to
fulfills stakeholders’ needs in terms of providing
a mechanism to supervise the financial and eco-
nomical performance of the project”.
The Internal Federation of Accountants recog-
nizes quality as the policies adopted by the audit
institution to provide a reasonable assurance that
all audit processes performed are implemented
according to the major principles controlling au-
dit. Audit quality is also known as the grade of
trust provided by the auditor to the financial state-
ments users. Moreover, it is considered the pos-
sibility for the auditor to find out a breach of an
accounting system.
Quality is known as the level of conformity with
the requirements, whereas organizations seek to
supervise performance, activities, and daily works
to reach the utmost quality level through minimiz-
ing errors, disclosure of breaches in a way fulfilling
the management needs.
Audit quality concept has several sides such as:
1- Audit quality concept as to its relation to dis-
covering the violations.
2- Audit quality concept according to its relation
with audit risk.
3- Audit quality concept as to its relation with
the interests of participants in the audit environ-
ment.
4- Audit quality according to the level of com-
pliance with the application of the international
professional standards.
