according to a greater level of technical

according to literature it is pure that the knowledge of the auditor plays an important part in refining audit quality. Demanding auditor knowledge in an industry leads to a greater level of technical skill and technical information. it is mainly due to auditors potential capacity to discover financial statement errors arrunada 2000 in this case industry expertise knowledge increases the likelihood that auditors discover errors and thereby affect the likelihood of reporting the discovered errors Hammersley 2006 demanding industry expertise can denote an incentive for audit firm to invest in expertise and to desire industry-based costumers. moreover the industries which normally use the expertise contract accounting related technologies are more influential to reach a higher level of audit quality by consuming industry expert auditors than non-expert auditors craswell et al.

1995 so audit quality is positively related to specialization and industry expertise lowensohn johnson elder davies 2007 in addition audit tenure is directly related to the industry expertise because of a new industrial audit client can desire to benefit from audit expertise technical ability and knowledge. so auditors will be able to fulfill the lack of client-specific knowledge during the first years of audit tenure stanley todd dezoort 2007 in this regard higher audit fee increases as audit expertise enhances. this is mainly due to the fact that higher auditexpertise can lead to higher audit quality francis 2004 in other words additional investment on expertise can cause a positive effect on the audit fee premium craswell et al. 1995 hence industry expertise is positively associated with audit fee and audit quality cahan godfrey hamilton jeter 2008 in this situation industry expertise might reach more premiums compared to non-industry expertise wang iqbal 2009 in addition industry expertise reinforced by auditors during the engagements will lead to higher audit quality hussein hanefah 2013 such experiences can also enhance the audit reputation through market credibility.

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in summary industryexpertise advantages together with general audit knowledge can enhance the audit technical ability and audit reputation and so increase audit quality as well as leading to a higher level of audit fees


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