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Audit Quality

Audit quality refers to the reliability and accuracy of the examination of a company's financial statements by external auditors. High-quality audits ensure that the information presented is truthful and comply with accounting standards, providing confidence to investors, stakeholders, and the public. Factors influencing audit quality include the auditor's expertise, independence from the company being audited, adherence to ethical standards, and thoroughness in reviewing financial records. A quality audit helps to detect errors or fraud, fostering trust in the financial reporting process, which is crucial for the effective functioning of markets and the economy.

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    Audit quality refers to the reliability and credibility of an audit, which is an independent examination of financial statements. High audit quality ensures that an organization’s financial reports are accurate and comply with regulations, providing stakeholders—like investors and the public—with confidence in the organization's financial health. It involves thorough planning, a skilled auditing team, adherence to professional standards, and a commitment to ethical practices. Ultimately, good audit quality helps prevent fraud and misrepresentation, fostering trust in the financial system and supporting informed decision-making.