2025, Vol. 8, Issue 2

The paper is a factual study of 1,247 audit engagements, with reference to 12 countries that focused on emerging markets since the quality of audit is the most relevant factor making sense in economic development. The study examines how the reliability, relevance, and sufficiency of the evidence influence the accuracy of the audit opinion and the degree to which the stakeholders feel confident about various developmental conditions with the inclusion of structural equation modeling and advanced regression analysis to examine the impact of evidence quality on confidence in the opinions and on the accuracy of opinion.With the introduction of the Audit Evidence Quality Index (AEQI) consisting of 24 indicators around four dimensions which include source reliability, verification completeness, corroboration strength, and temporal relevance, Audit documentation, regulatory inspection reports and engagement team surveys are considered as data source, Big Four firms (60%), national (25%) and regional firms (15%).

Findings indicate high-quality evidence increase opinion accuracy by 67 percent and decrease audit failures by 45 percent with effects consistently stronger in emerging economies where effect sizes are 20-35 percent higher in developed economies. Evidence enhanced by technology is 23% more effective and emerging markets exhibited increased potential of improvement with a lower adoption level. The impacts of all the evidence quality magnitudes are more prevalent in developing contexts, especially the strength of corroboration. The cost-benefit analysis shows that emerging markets have higher returns on investment on the quality of evidence (189-420% ROI) because of lower cost baseline and additional opportunities to improve (189-420% ROI) (189-420% ROI). Cultural and developmental influences modify the effects of professional skepticism and necessitate the need to train using modified measures. The analysis offers validated instruments in the measurement of quality in developmental settings and offers strategic advice to practitioners, regulators and academic institutions in the enhancement of quality in auditing in context specific interventions.