engleski

The Effectiveness of Audit Quality Control Mechanisms in Croatia

In order to protect the public interest and ensure confidence in auditor's performance, it is essential to implement certain quality control mechanisms into the audit profession. Quality control procedures can be established by audit firms, entities that are the subject of audit and regulators. The purpose of this paper is to investigate the importance of different mechanisms of audit quality control from the standpoint of auditors and audit users. In order to explore how various participants in the audit process value different audit quality control mechanisms, a survey was conducted among three main groups of respondents: auditors, internal and external audit users. Research results suggest that the respondents perceive that all mechanisms of audit quality control have a positive influence on audit quality. When mutually comparing the average responsesfor individual control mechanisms, it can be concluded that the respondents equally value actively involved audit committees and external supervision, but they also assign greater importance to the internal quality control systems that are implemented at the level of audit firms. The results are expected, due to the fact that these systems act preventive at the source of potential problems.

audit of financial statements, internal audit quality control system, audit committee, external audit public oversight, Croatia

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