Abstract:
This study examines the impact of remote auditing on audit quality in audit firms in Sri Lanka,
a shift accelerated by the COVID-19 pandemic. As traditional auditing methodologies were
challenged during the pandemic, this research addresses firms adapted to remote auditing
practices and the subsequent impact on audit quality. The study identified four independent
variables: time pressure, challenges, digitalization, and work location. The dependent variable
in this study was audit quality. Employing a quantitative research approach, primary data were
collected through questionnaires distributed to 100 audit professionals across various firms in
Sri Lanka. The analysis utilized Descriptive statistics, correlation analysis, and multiple
regression analysis were conducted using the SPSS software, enabling a robust examination
of the relationships between the proposed variables. Hypothesis testing reveals significant
correlations between all four independent variables and audit quality. However, the regression
analysis supported only two variables–time pressure and digitalization–which significantly
impact audit quality. Based on these findings, this study highlights the critical need for
external audit firms to invest in enhanced training programs and technology to equip auditors
for remote work. Furthermore, it emphasizes the development of robust protocols to maintain
high audit quality standards in remote environments. Overall, this study provides valuable
insights and recommendations for improving audit practices in the evolving auditing
landscape, particularly in the face of ongoing reliance on remote methodologies.
Understanding these dynamics is essential for sustaining audit quality and performance as
firms continue to navigate the post-pandemic environment.
