The Effect of Audit Process and Quality Control Systems on Audit Quality in the Public Sector: The Moderating Role of Audit Expertise

Purpose: The objective of this paper is to analyse the extent to which audit process and quality control systems affect audit quality through the moderating effect of audit expertise. Design/Methodology/Approach: The study employed a cross sectional survey research design using the International Auditing and Assurance Board’s (IAASB) framework for Audit Quality (International Auditing & Assurance Standards Board, 2014a). With the application of PLS-SEM Technique. Findings: The study found that audit process influences audit quality whiles quality control systems do not affect audit quality in the Public Sector. Furthermore, it was also established that audit expertise did not moderate the relationship between audit process and audit quality whiles audit expertise rather did negatively moderate the relationship between quality control systems and audit quality. The significant impact of audit expertise on audit quality was also found in the study. Implications/Research Limitation: It is expected that the results of this study would significantly extend and contribute to the growing literature on Audit Quality as well as to the field of public sector auditing. However, the study was limited to only public sector auditors working with Ghana’s Supreme Audit Institution (SAI), the Audit Service. Practical Implication: The outcome of this research would provide significant guidance to policy makers and professionals in making regulatory reforms and revising existing policies to improve its process factors (i.e. the audit process and quality control systems) in order to achieve Audit Quality especially in the Public Sector. Social Implications: This helps align corporate activities with broader societal goals such as environmental protection and social equity, contributing to sustainable development. Originality/Value: To the best of the authors’ knowledge, this is the first study to explore the moderating effect of Audit Expertise on the relationships between audit process and quality control systems on Audit Quality especially from a public sector perspective.