THE IMPACT OF AUDIT QUALITY ON THE OPERATIONAL SUCCESS OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND

Abstract

Abstract— This study explores the intricate relationship between audit quality and the operational success of companies listed on the Stock Exchange of Thailand (SET). Employing a mixed-methods approach, the research integrates quantitative surveys and qualitative interviews to provide a comprehensive understanding of the impact factors shaping operational outcomes. The quantitative phase of the study reveals significant correlations between key indicators of audit quality and financial performance metrics. Auditor independence emerges as a crucial factor positively associated with operational success and demonstrate higher return on assets (ROA) and return on equity (ROE). Similarly, effective audit committees and consistent adherence to auditing standards are found to contribute to improved operational efficiency and financial stability. The qualitative interviews with stakeholders find that stakeholders perceive a strong link between audit quality and operational success, emphasizing the role of high-quality audits in maintaining stakeholder confidence and financial transparency. Additionally, regulatory frameworks are identified as significant impact of audit quality, shaping the overall operational landscape. Practitioners in the field are urged to strategically align audit processes with a focus on auditor independence, effective audit committees, adherence to auditing standards, and investments in technology and transparent communication with stakeholders are emphasized as crucial elements for sustained operational success.