Abstract
Purpose: The paper aims to analyse audit team characteristics that were perceived to be affected on audit quality. Specifically, it focuses principally on whether audit team characteristics, i.e., independence, continuous education and training, experience and professional conduct enhances audit quality. This study examines the moderating effect of the external environment audit i.e., professional bodies, laws and regulations, and recognized standards in the relationship between audit team characteristics and audit quality. Design/methodology/approach: Multiple regression analysis is applied to examine the association between variables of the study. A questionnaire survey was conducted of 251 external auditors, by personally administered questionnaire from Libyan the Association of Accountants and Auditors (LAAA). Findings: the audit team characteristics have positively and significantly related to audit quality. As well as the regression analysis at dimension level shows positively and significantly related to audit quality. The findings also indicate that the external environment audit factors moderates the relationship between variables of study. Practical implications: The instrument presented will provide to measure audit quality in Libya, with a practical understanding in the area of audit quality. Moreover, researchers and practitioners from other may be able to use these models in future to measure audit quality. Originality/value: This is the first study examining the impact of external environmental factors on audit quality and the findings demonstrated its moderating effect on audit quality.