The Use Of Substantive Aggregate Analytical Procedures : Do Auditors Particularly Rely On Nonsignificant Outcomes?
ISBN
978-961-240-233-4
Type
conference paper
Date Issued
2012-05-09
Author(s)
Abstract
In order to find out whether auditors particularly rely on results of substantive analytical procedures which indicate no significant difference between the auditor's expectation of recorded amounts and the book value, an experimental investigation was conducted. The findings show that auditors do rely on nonsignificant outcomes of substantive aggregate analytical procedures when assessing the likelihood of material misstatements. Although they overestimate the reliability of nonsignificant outcomes, they do not particularly rely on them. Instead, when adjusting the audit programme, their audit decisions are asymmetrical. Where outcomes are nonsignificant, they do not adjust the original proportion of tests of details, whereas they increase the proportion if the outcome is significant.
Language
English
Keywords
substantive analytical procedures
tests of details
audit evidence
audit
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
CONFERENCE PROCEEDINGS, EAA 2012
Publisher
European Accounting Association EAA
Publisher place
Brüssel
Volume
Paper 17
Start page
300
Event Title
35th Annual Congress European Accounting Association (EAA)
Event Location
Ljubljana (Slovenia)
Event Date
09.-11.05.2012
Subject(s)
Eprints ID
218442
File(s)![Thumbnail Image]()
Name
Conference paper.pdf
Size
166.34 KB
Format
Adobe PDF
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