Indsigt i revisionskvalitet i Danmark

Mikkel Lillelund Mørch & Henrik Vinholt

Student thesis: Master thesis


Recent bankruptcies have resulted in huge losses for investors and creditors. This has lead to an increased focus on the quality of the work performed by the auditors. The Greenpaper from the EU has lead to suggestions to new regulation of auditors in the European Union which could imply that the current regulation does not fully ensure the execution of proper audit quality. The latest quality control performed in Denmark by Revisortilsynet concludes an error-rate of 46% of the investigated audit firms. The basis of this conclusion is not thoroughly described, so in order to interpret if this error rate is an actual state of the quality of Danish auditors, or if the report need to be supplemented with other circumstances this thesis investigates, “how and to what extend the public can observe and evaluate audit quality in Denmark”. First of all it is necessary to determine what audit quality is. In Denmark an auditors responsibility is determined according to generally accepted auditing standards. The meaning of this is not described in the regulations, but is determined by assuming what a well functioning auditor would do. FRC and IAASB have published papers highlighting drivers, that have an influence on audit quality. These are referred to as “Audit Quality Frameworks”. Information regarding audit quality in an historic perspective is somewhat available to the public. Mainly rulings by Revisornævnet or publicised investigations performed by Erhvervsstyrelsen allow the public to observe and evaluate whether audit quality has been present or not. In order for the public to assume, that audit quality will be performed in the future it is necessary to determine whether quality drivers are present in the audit firm. The transparency reports gives an insight in the drivers at firm level but the reports are lacking measurable information, so the drivers are only possible to observe but not evaluate. The external quality control performs an evaluation of many areas that are equal to the drivers for audit quality, so in an indirect way it is possible to determine whether many of that drives have been present in the audit firm.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2012
Number of pages134