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Cited by 3,188Auditing, Earnings Management, GovernanceCorporate Governance and Financial ManagementFinancial Reporting and XBRL

A review of archival auditing research

Open access
DeFond, Mark, Zhang, Jieying·2014·Journal of Accounting and Economics
DOI 10.1016/j.jacceco.2014.09.002
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Abstract

We define higher audit quality as greater assurance of high financial reporting quality. Researchers use many proxies for audit quality, with little guidance on choosing among them. We provide a framework for systematically evaluating their unique strengths and weaknesses. Because it is inextricably intertwined with financial reporting quality, audit quality also depends on firms’ innate characteristics and financial reporting systems. Our review of the models commonly used to disentangle these constructs suggests the need for better conceptual guidance. Finally, we urge more research on the role of auditor and client competency in driving audit quality.

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  • DeFond and Zhang (2014) showed that outsiders already judge audit quality through coarse, outcome-based proxies.

    “DeFond and Zhang (2014) showed that audit quality is already assessed by outsiders through coarse and outcomebased proxies.”

    From Auditing the Black Box: Rethinking Audit Assurance and Professional Liability in the Age of Artificial Intelligence (2026) · cites this paper as DeFond and Zhang (2014)

    The Introduction and §2.3 say audit quality is difficult to observe and that researchers commonly assess it using output-based proxies with important limitations. They do not establish that outsiders themselves generally assess audit quality through those proxies; the review also identifies input-based measures. No page number is available for these passages in our copy. (LLM, conf=0.86)

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Authors
DeFond, M., & Zhang, J.
Affiliations
  • University of Southern California (US)
  • The University of Texas at Dallas (US)
Corresponding author
DeFond, Mark
ORCID
Venue
Journal of Accounting and Economics
Publisher
Elsevier BV
Published
2014-11
Volume
58
Issue
2-3
Pages
275-326
ISSN
0165-4101 (ISSN-L)
DOI
10.1016/j.jacceco.2014.09.002
OpenAlex
W3121143499
Cited by
3,188
References
3
Citations by year
2026: 337 · 2025: 400 · 2024: 358 · 2023: 334 · 2022: 308 · 2021: 309 · 2020: 286 · 2019: 209 · 2018: 211 · 2017: 188 · 2016: 119 · 2015: 76 · 2014: 39 · 2013: 7 · 2012: 4
FWCI
598.02
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Accounting and Economics (publishedVersion, cc-by-nc-nd)
  • SSRN Electronic Journal (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Accounting › Auditing, Earnings Management, Governance
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Financial Reporting and XBRL
Keywords
audit quality, financial reporting quality, auditor competence, financial reporting system, firm characteristics

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