Audit Quality Control and Standards: A Case Study of Auditing Firms in Kigali, Rwanda

Most accounting firms do not acknowledge they are susceptible to non-compliance on audits in lieu to accounting standards globally. The effectiveness of audit quality control mechanisms is essential to maintain the integrity and reliability of financial reporting. However, noncompliance with these controls can jeopardize the quality of audits and erode trust in financial markets.  According to studies, accounting standards infringement may happen both inside and internationally and may include clients, staff, or other important stakeholders in a firm. According to the findings of previous studies, non-compliance to accounting standards can happen even when there are no due regulations, tools, and models in place.  This proposal sought to explores the critical issue of audit quality control noncompliance and its impact on auditing standards within the context of auditing firms in Kigali, Rwanda. More specifically, this research sought to investigate the influences of influence of competence and standards on auditing firms in Kigali, Rwanda, establish the influence of firm’s accountability and standards on auditing firms in Kigali, Rwanda and finally determine the influence of due professional care and standards on auditing firms in Kigali, Rwanda. The study was anchored on Signaling Theory and agency theory. The study adopted descriptive research design method. The population of the study encompassed all the 23 auditing firms in Kigali, Rwanda thus a census approach was applied. The researcher used secondary data from the auditing firms. Descriptive statistics, such as frequencies and percentages, were used to summarize and present the survey responses. The research result revealed that all the predictor variables had a moderate relationship on standards. Accountability tools ranking last with (r = 0.519). Pearson Correlation coefficient of competence and standards was computed and established as {0.553, p-value < 0.001} policies contribute moderately to fraud control The computed Pearson correlation coefficient for due professional care on standards control was (r=0.547, p-value < 0.001). By investigating the prevalence, causes, and consequences of noncompliance, it sought to provide valuable insights for auditors, regulators, and policymakers to enhance audit quality and uphold auditing standards in Rwanda's financial reporting landscape.