Audit quality from a service perspective: a systematic literature review

Abstract

Audit quality is a multidimensional and latent construct that researchers struggle to evaluate and interpret. This paper follows an interdisciplinary approach by systematically reviewing the literature on audit quality evaluation from a service quality perspective. This service perspective, aligned to stakeholder theory, allows us to consider various stakeholder perspectives. We review the literature through the AUDITQUAL audit quality dimensions to identify areas for further research. These higher-order audit quality dimensions reflect the competence, independence, relationship, and service quality aspects of audit quality. We follow a systematic literature review methodology informed by the 2020 Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) statement and supported by the Rayyan software tool. Our review shows that the competence, independence, and relationship dimensions usually form the foundation for audit quality research and assumptions. In contrast, only one aspect of client attributes within these dimensions—namely, earnings management—is well developed. Furthermore, the service (functional) quality dimension is shown to have the most potential for future insight into audit quality evaluation. Finally, only a few studies have empirically tested the audit quality construct in a multidimensional sense as most have focused on only one or two dimensions using proxies. Empirical research into audit quality can benefit from taking a service quality view to broaden our understanding and testing thereof.