The primary goal of this study is to identify the influence of auditor incentives in audit quality and how and why it influences the auditor in practice in south Asian countries like Sri Lanka and Bangladesh. This research will be relevant to authorities like audit firms, regulators, practitioners, and academics and it will be helpful to make the standard setup to establish the methods or procedures to offer the incentives which can be matched with the global context. Theoretical concepts are based on previous research and publications regarding incentives, technological use in audit, auditor motivation, auditor behaviour, audit report and audit quality. Literature was used to derive the research gap and research questions. According to the literature, there is no universal definition to define the audit quality and presently, it is applying the standard frameworks to overcome that requirement. In this study, the authors also identified such frameworks and were mainly concerned about the Knechel et al, (2013) and IAASB (2014). According to the Knechel et al, (2013), the authors recognized the audit quality indicators under input, process, context, and outcome. The study is conducted based on the Interpretivism paradigm as qualitative research concerning subjective viewpoints of ontology and humanist ways. For this thesis purpose the authors use semi-structured interviews with auditors from big four, private firm and large local audit firm in Sri Lanka and Bangladesh as it helps to develop the findings, because these sorts of interviews provide detailed answers to the questions, interviewer can change the questions during the interview session according to the answer of the interviewee. From each country six participants have been chosen to conduct the interview. The findings shows that auditor incentives have influenced on audit quality. Auditors who are highly motivated with incentives can produce audit report with free of misstatement. Moreover, Bangladeshi audit firms are not using technology and automation for auditing and accounting system except big four, whereas Sri Lankan audit firm are conducting their auditing and accounting through automation. Finally, the authors found that the Incentives, it may be financial or non-financial, are motivating the auditors and then auditors are doing their best effort to deliver the quality audit report.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-210021 |
| Date | January 2023 |
| Creators | Lasanthi, Abeysiri Munasinghege, Akther, Sharmin |
| 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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