Challenges Pertainig to the Quality of Financial Reporting Audits

Abstract

The financial statement audit aims to verify whether a legal entity’s accounting policies and financial statements are accurate and free of error. It is not only a relationship between the entity and independent auditors but also a valuable service that delivers cost-effective, reliable information to users. While the standards issued by the International Auditing and Assurance Standards Board provide a foundation for audit quality, they represent just one of several influencing factors. Internationally, auditor independence and service quality are regarded as critical, with extensive research conducted in the area. As of 2023, 185 audit firms are active in Mongolia, raising concerns over the quality of audit services. This study aims to identify the main factors affecting audit quality, assess whether users and company management are satisfied with audit outcomes, and propose recommendations for improving audit service quality from both theoretical and practical perspectives.