THE FACTORS AFFECTING THE INCOME OF INDEPENDENT AUDIT FIRMS: QUALITY ASSURANCE SYSTEM REVIEW

Abstract

Independent audit firms carry out their business and transactions in accordance with pre-determined standards and principles to ensure quality audit activities and public trust. The quality assurance system is an important factor in ensuring quality and constantly improving. In this study, the effect of quality assurance system applications on independent revenues was investigated. In the study, the information included in the 2018 transparency reports published by the independent audit firms were analyzed with the content analysis method. In this context, the determinative effect of the relevant information on the independent audit revenues was analyzed in the SPSS 16.0 package program with the multiple linear regression model and stepwise method to investigate the transparency reports and the information about the characteristics of independent audit firms. In the results of working; When the independent variables of the number of PIEs that provide audit services, the membership status of the international audit network, the number of key auditors and the effectiveness of the quality assurance system were taken as a whole, it was observed that they had a significant and positive effect on the audit income. These variables have 57% determinative effects on independent audit income. The establishment of a Quality Assurance System can explain approximately 15% of the variability in independent audit income. It has been concluded that the quality assurance system improvements made by independent auditing firms have an impact on increasing revenues.