Exploring the role external audit regulation in Namibia plays in ensuring the quality of financial statement audits in the country

Abstract

In Namibia external regulation of the audit profession is enforced by the Public Accountants’ and Auditors’ Board as well as the Institute of Chartered Accountants of Namibia, with the ultimate goal of enhancing the quality of financial statement audits. This study explored the role external audit regulation in Namibia plays in actually ensuring the quality of financial statement audits in the country and is the first research of its kind. Previous research includes the exploration of a correspondence between audit quality and reportable irregularities in South Africa, however the correspondence between external audit regulation and audit quality, specifically in Namibia, is yet to be researched. To address this gap, a mixed method approach grounded in an interpretive epistemology was employed. The opinions of audit and regulation experts on the effect that external regulations have on audit quality using a correspondence analysis instrument was sought and interviews were conducted to complement the correspondence analysis. This research is helpful to regulators and audit practitioners in gaining a better understanding of whether or not the current regulations adequately enhance audit quality, instead of being a perceived ‘tick-the-box’ exercise