A STUDY OF AUDIT QUALITY IN VIETNAM

Hoa Pham
BDO Vietnam
Pesi Amaria
Sarasota University
Thanh Bui
University of Mount Union
Sang Tran
Vietnam Institute for Trade and Industry Studying
ABSTRACT
The purpose of this study was to examine auditors’ perception of audit quality and
factors influencing audit quality in Vietnam. This study attempted to enhance auditors’
understanding of audit quality, auditor competence, and auditor independence. Also, it explored
auditors’ opinions on factors influencing audit quality and its dimensions. Further, it empirically
examined Vietnamese audit staffs’ perceptions of the audit quality and factors influencing audit
quality in Vietnam. The results are not based on actual quality of audit firms in Vietnam or actual
predictive data in Vietnam.
The result from correlation and descriptive analysis suggested factors influencing audit
quality in Vietnam. First, competitive bidding for audit engagement affects audit quality in
Vietnam. Second, Vietnamese auditors who did not support long-term audit engagement rated
poor quality whereas auditors who supported long-term audit engagement rated high quality that
long-term support engagement affects audit quality. Third, provisions of additional non-audit
services affect audit quality. The results suggested that there are positive correlations between (a)
audit firm size and audit quality, (b) industry expertise auditor and audit quality. The study also
found that employee turnover and past employment with audit client have negative effects on audit
quality in Vietnam.