Factors affect the quality of the audit financial statements in enterprise, Vietnam

Abstract

The development of a market economy, especially the financial markets, are demanding transparency and truthfulness of the financial information with high quality. The information in the financial statements will direct impact and indirect to the interests and decisions of investors. Independent auditors evaluate the role of honest and reasonable legal in financial information of the business, but there are risks. This study focuses on analyzing factors affect the quality of the audit financial statements in enterprise, Vietnam. The analysis method used in this study are: Descriptive Statistics to assess overall risks of fraud in the financial statements of the business; factor analysis method to explore and test the Cronbach’s Alpha and linear structural equation modeling and testing of scale. In addition, the method of linear structural model (SEM) was used to test the reliability and value of differentiated, converged value, calculation of the unitary concept and scale of research. The study results showed that auditor’s occupational qualification is most important factor, and so on factors as: legal environment, enterprises, independence, the quality control of the audit company.