External audit quality in a disruptive environment : challenging the current pandemic

Abstract

This study explores how Covid-19 may affect audit quality and if remote auditing was used effectively. This paper uses qualitative data obtained through open-ended interviews with external auditors within Big 4, Big 10, and local firm to explore possible impacts on key aspects for audit quality. These include Internal control environment, Going-concern assessments, Risk assessment, Materiality thresholds, Fraud risk, Revenue recognition, and Re-evaluation of assets and debt covenants. The results in this study can be considered as indicators for future academics who want to understand how the Covid-19 pandemic influenced audit quality beyond the pandemic as it is critical for the audit community to track the pandemic's ramifications.