CONCEPTUAL AND METHODOLOGICAL FRAMEWORK FOR FINANCIAL STATEMENT AUDIT QUALITY ASSURANCE

Abstract

The article examines the theoretical and applied aspects of ensuring the quality of financial statement audits under conditions of economic transformation, digitalization of audit activities, and increasing information risks. The study substantiates that audit quality should be considered as an integrated characteristic formed under the influence of regulatory, organizational, professional, informational, digital, risk-oriented, and ethical determinants. The research systematizes the most common violations identified during external inspections of audit firms’ quality management systems, including insufficient documentation of audit procedures, formal risk assessment, deficiencies in internal quality control. The article develops an integrated system of determinants influencing the quality of financial statement audits and identifies their functional impact on audit activities. The interrelation between digital, informational, ethical, and risk-oriented determinants is substantiated, particularly in the context of using cloud technologies, Big Data tools, automated audit procedures, and digital audit platforms. As a practical result of the research, an integrated audit quality indicator (IAQ) is proposed for assessing the effectiveness of audit quality management systems. The proposed indicator combines regulatory, organizational, professional, informational, digital, risk-oriented, and ethical determinants into a unified assessment model. A scale for interpreting the integrated indicator is developed to evaluate the effectiveness of audit procedures and identify critical audit risk areas. The scientific novelty of the study lies in the formalization of the relationship between professional judgment, digital risks, information security, and audit quality. The study substantiates the necessity of integrating risk-oriented, subject-oriented, and digital approaches into the audit quality assurance system. Prospects for further research are associated with the development of methods for quantitative assessment of digital audit risks, implementation of continuous audit monitoring systems based on Data Analytics technologies, and adaptation of international audit quality management approaches to the conditions of the national economy.