CURRENT CHALLENGES IN AUDIT QUALITY MANAGEMENT WITHIN THE EUROPEAN REGULATORY FRAMEWORK: A COMPARATIVE ASSESSMENT AND DIRECTIONS FOR FURTHER IMPROVEMENT
DOI:
https://doi.org/10.37332/Keywords:
audit quality, audit quality management, quality management system, external oversight, International Standards on Quality ManagementAbstract
Haievskyi O.O. CURRENT CHALLENGES IN AUDIT QUALITY MANAGEMENT WITHIN THE EUROPEAN REGULATORY FRAMEWORK: A COMPARATIVE ASSESSMENT AND DIRECTIONS FOR FURTHER IMPROVEMENT
Purpose. The aim of the study is to examine and systematize the key deficiencies of quality management systems based on an analysis of reports issued by public oversight bodies for audit activities in the EU countries and Ukraine, in order to identify common and distinctive problems faced by audit firms and to assess the frequency of their occurrence.
Methodology of research. The study employs methods of analysis and synthesis to generalize typical deficiencies of quality management systems; comparative analysis to examine the structure of violations across different countries; a structural and functional approach to develop a maturity matrix of oversight reporting; and content analysis to process official reports of regulators for 2023-2024. The methodological framework of the research is grounded in the International Standards on Quality Management.
Findings. It is substantiated that in countries with developed audit markets, the predominant share of deficiencies relates to the conceptual design of quality management systems. A transformation in the structure of deficiencies in Ukraine has been identified, marked by a shift of focus toward the “Engagement Performance” component. National specificities of regulatory oversight priorities across seven European countries have been analysed. The existence of a dichotomy in external quality control approaches – preventive and transactional – has been demonstrated. Key directions for enhancing the effectiveness of quality management systems in the context of Ukraine’s integration into the European regulatory framework have been summarized.
Originality. A dichotomy of approaches to external oversight of audit quality has been established, which allows us to systematically explain the differences between the preventive model of developed economies and the transactional model of developing countries. The theoretical substantiation of quality management systems as a key object of regulatory control under the implementation of ISQM 1 and ISQM 2 has been further developed. The approach to assessing the reporting of public oversight bodies has been improved through the development of a comparative maturity matrix.
Practical value. The obtained findings may be used by public oversight bodies, audit firms, and professional audit organizations to enhance quality management systems, adapt internal policies and procedures to the requirements of ISQM 1, and improve the effectiveness of external oversight.
Key words: audit quality, audit quality management, quality management system, external oversight, International Standards on Quality Management.
References
1. Darmawan, A. (2023), “Audit quality and its impact on financial reporting transparency”, Golden Ratio of Auditing Research, vol. 3, issue 1, pp. 32–45, DOI: https://doi.org/10.52970/grar.v3i1.375.
2. Highlights des constatations effectuées lors des contrôles de qualité 2024 menés auprès de réviseurs d’entreprises non EIP et best practices (2025), CSR, available at: https://www.ctr-csr.be/sites/default/files/media/files/2025-11/baob_pointsdevue_highlights_2024.pdf (access date November 13, 2025).
3. Jahresbericht 2024 (2025), APAB, available at: https://www.apab.gv.at/DE/repos/ files/APAB/files/open/APAB%5fJahresbericht%5f2024.pdf (access date September 09, 2025).
4. Kalita, N. and Tiwari, R.K. (2023), “Audit Quality Review: An Analysis Projecting the Past, Present, and Future”, Scientific Annals of Economics and Business, vol. 70, no. 3, pp. 353-377, DOI: https://doi.org/10.47743/saeb-2023-0032.
5. Lubenchenko, O.E., Shulha, S.V. and Korinko, M.D. (2022), “New Standards of Quality Management in Audit: The Risk-Based Approach”, Statistics of Ukraine, vol. 96, no. 1, pp. 117–126, DOI: https://doi.org/10.31767/su.1(96)2022.01.11.
6. Raport de activitate aferent anului 2024 (2025), Autoritatea pentru Supravegherea Publică a Activității de Audit Statutar (ASPAAS), available at: https://www.aspaas.gov.ro/raport-de-activitate/raport-de-activitate-2024/ (access date September 19, 2025).
7. Tätigkeitsbericht 2024 der Kommission für Qualitätskontrolle der Wirtschaftsprüferkammer (2025), Wirtschaftsprüferkammer, available at: https://www.wpk.de/fileadmin/documents/ Oeffentlichkeit/Berichte/Taetigkeitsbericht-KfQK-2024.pdf (access date September 09, 2025).
8. Zprava o cinnosti Rady pro verejny dohled nad auditem za rok 2024 (2025), Rada pro verejny dohled nad auditem (RVDA), available at: https://www.rvda.cz/contents/download/268/zprava-o-cinnosti-v-roce-2024 (access date September 09, 2025).
9. Zvit pro diialnist Orhanu suspilnoho nahliadu za audytorskoiu diialnistiu za 2024 rik (2025), Audit Public Oversight Body, available at: https://www.apob.org.ua/wp-content/uploads/2025/08/Zvit-pro-diialnist-OSNAD-za-2024-rik-na-sait.pdf (access date September 19, 2025).
10. Kuzyk, N.P., Shevchuk, K.V. and Vershuta, Yu.S. (2024), “Quality as a determinant feature of financial statement audit”, Ekonomika ta suspilstvo, no. 70, DOI: https://doi.org/10.32782/2524-0072/2024-70-137.
11. Ministry of Finance of Ukraine (2021), International Standard on Quality Management (ISQM) 1, “Quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements”, available at: https://www.mof.gov.ua/storage/files/ Hide/4_ISQM_1_Final_Standard_(Not_Formatted)(uk).pdf (access date September 19, 2025).
12. Ministry of Finance of Ukraine (2021), International Standard on Quality Management (ISQM) 2, “Engagement Quality Reviews”, available at: https://www.mof.gov.ua/storage/files/ Hide/5_ISQM_2_Final_Standard_Not_Formatted_uk.pdf (access date September 19, 2025).
13. Otchet za deinostta prez 2024 god (2025), Komisiya za publichen nadzor nad registriranite oditori, available at: https://www.cposa.bg/media/03tpnydx/otchet-za-deinostta-na-komisiyata-za-publichen-nadzor-nad-registriranite-oditori-prez-2024-g.pdf (access date September 19, 2025).
14. Redko, O.Yu. (2020), “The two-faced Janus of Ukrainian audit quality”, Naukovyi visnyk Natsionalnoi akademii statystyky, obliku ta audytu, no. 3, DOI: https://doi.org/10.31767/nasoa.3-2020.07.
15. Khrypiuk, V.I. and Kovaliova, V.Yu. (2022), “Problematic issues of the quality of audit services”, Ekonomika ta suspilstvo, no. 44, DOI: https://doi.org/10.32782/2524-0072/2022-44-51.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
