What Skills and Competencies are Needed in Order for Auditors to Execute a High Quality Audit?

• In Event: Emerging and Innovative Research Session II

Abstract

The proposed qualitative student will employ methods to provide a deeper understanding into
how auditing is practiced. The research will apply human resource development principles
related to identifying the knowledge, skills, and abilities that are required to perform a quality
audit in today’s complex business environment based on a risk based audit framework. The
findings will provide opportunities for future theoretical and empirical research.
The purpose of this study is to identify the skill sets required to produce a high quality audit in
today’s complex business environment. The study will employ a mixed method case study that
will use focus groups to:
1. Identify relevant audit skills,
2. Cluster the skills into major categories
3. Modify the skills based on revisiting the summary with the focus group
4. Perform follow up literature review to support the findings.
The study will employ the Delphi research method. This approach provides an opportunity for
experts to communicate their opinions and knowledge anonymously about a complex problem,
to see how their evaluation of the issue aligns with others, and to change their opinions, if
desired, after reconsideration of the findings of the group's work.
A gap exists may exist between the attributes, competencies and professional qualifications and
skills of audit personnel and their ability to perform a modern, high quality public interest audit,
particularly in highly complex and challenging multi-national environments. A large complex
audit today may require, for example, the professional skills of engineers, actuaries, economists,
investment bankers and MBAs; that is, staff other than purely professional accountants.
In the sustainability assurance arena, a wide variety of non-accounting professionals are
employed. A multi-skilled audit team may provide the audit partner with the best chance of
exercising the necessary professional judgment to enhance audit quality and restore the
confidence in financial statements. How might an audit partner select, develop and utilize the
best team? What skills and competence will the partner consequently require?
This research proposal contemplates exploring various theories. This research could further
explore or challenge underlying theories related to: (1) corporate governance, (2)
agency/principal agent, (3) the efficient market hypothesis, (4) shareholder value and (5) human
capital. The goal is to develop a deeper understanding of the contemporary audit phenomena.
This study will build upon the literature from three main thrusts work.

Authors

• Michael Wilson, Metropolitan State University

• James T. Brown, University of Minnesota, Twin Cities Campus

• Chau Nguyen, McGladrey