The purpose of the study is to understand the complex relationship between audit firm culture and audit quality within the unique context of Sri Lanka. Solely dependent on insights provided by a group of auditors the research identifies key factors that influence the culture of audit firms and its impact on the quality of audit services. The study highlights the fundamental role of ethics and professionalism as main components of audit firm culture in Sri Lanka. The auditors operate as per code of ethics promoting independence and transparency which is essential in developing trust and reliability in financial reporting and audit services. Work-life balance is another critical cultural aspect that significantly influences audit quality. Lack of emphasis on personal well-being and work-life balance will negatively impact auditors' performance and job satisfaction. The hierarchical structures in Sri Lankan society are also seen in audit firms, affecting business culture. Therefore, open communication within audit teams and senior management is essential for knowledge sharing and conflict resolution. The implementation of modern technology, improving technical skills, and regular training in accounting and auditing standards have been identified as vital factors in ensuring audit quality. Furthermore, the study recognizes that competitive remuneration and the recognition of professional auditors play a substantial role in retaining and motivating staff as equal opportunity audit firm culture ultimately enhances audit quality. The Sri Lanka’s regulatory influence and audit framework highlights the importance of adherence to ethical and professional standards where practicing audit firms influences its culture and improve audit quality. The interaction of the above factors forms the culture within audit firms in Sri Lanka, subsequently impacting the quality of audit services. Addressing these aspects Sri Lanka can enhance its audit quality and create a reliable financial reporting environment
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-216773 |
| Date | January 2023 |
| Creators | Fernando, Nimesh, Pradeep Kumara, Ashoka |
| Publisher | Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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