Exploring the Quality of SME Audits in the UAE
Abstract
[Purpose: The aim of this dissertation is to investigate audit quality in the UAE for small and medium sized companies, using the Framework for Audit Quality proposed by the IAASB]. [Design/Methodology/Approach: The methodology used was to describe the laws and regulations now in place in the GCC and to review some of the existing authorities that are working to regulate the audit industry in the country’s private sector. Next, questionnaires were used to measure the perception of audit quality in SMEs, which was analyzed by means of factor analysis. A number of interviews were also conducted over the same variables of the framework and the resulting data were analyzed using NVIVO. Finally, a field experiment was conducted in the UAE]. [Findings: It was noted that the regulation over the audit industry is under-developed. It was also noted that there are differences in the perceptions of audit quality in the SME market. Finally, it was noted that audits are being conducted for SMEs in the UAE without adherence to auditing standards]. [Limitations: Measuring audit quality directly by obtaining confidential audit files is very challenging]. [Originality/Value: It was expected that the study would identify major weaknesses affecting audit quality in the SME market in the UAE].