IMPACT OF AUDIT QUALITY ON PERFORMANCE

Abstract

Purpose: This research paper is based on examination of the impact of audit quality on firm performance. The firm performance is measured by ROE & ROA. The sample consists of 340 companies registered in Karachi Stock Exchange in Pakistan in the year 2014.This study finds that audit quality has no significant impact on the firm performance. Methodology/Sample: The study involves use of 340 listed companies in Karachi Stock Exchange. Statistical analysis has been undertaken to investigate the impact of audit quality on firm performance. The statistical analysis used correlation and regression analysis to establish the relationship between audit quality and firm performance. Findings: Analysis of the study and comparative results suggests that the impact of audit quality on performance is not apparently visible. Practical Implication:As the sample size of the study is confined to one year, hence the findings cannot be generalized. As such this aspect can be explored by future researchers.