Bent Warming-Rasmussen

Quality dimensions in external audit services- an external user perspective

A particular characteristic of auditing is that it is aimed at a heterogeneous group of stakeholders with occasionally diverging interests. This makes it even more relevant, though complicated, to determine exactly what users regard as quality. Based on empirical research, this paper investigates how two external user groups (shareholders and financial journalists) perceive audit quality, and analyses whether managing directors (preparers) and public accountants (auditors) evaluate the salient quality attributes differently. The overall results are as follows. (1) External users tend to perceive audit quality attributes as attributes that also inspire confidence in the auditor. (2) A number of different quality attributes can be summarized under six main quality dimensions. These dimensions mainly concern moral and ethical aspects. (3) The four groups of respondents (shareholders, financial journalists, managing directors and public accountants) assign significantly different values to these quality dimensions.