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The Use Of Substantive Aggregate Analytical Procedures : Do Auditors Particularly Rely On Nonsignificant Outcomes?

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.
   
type conference paper (English)
   
keywords substantive analytical procedures, tests of details, audit evidence, audit
   
name of conference 35th Annual Congress European Accounting Association (Ljubljana (Slovenia))
date of conference 9-5-2012
title of proceedings CONFERENCE PROCEEDINGS, EAA 2012
page(s) 300
volume / edition Paper 17
publisher European Accounting Association EAA (Brüssel)
ISBN 978-961-240-233-4
review double-blind review
   
citation Burger, D., Müssig, A., & Blumer, A. (2012). The Use Of Substantive Aggregate Analytical Procedures: Do Auditors Particularly Rely On Nonsignificant Outcomes?. In CONFERENCE PROCEEDINGS, EAA 2012, Paper 17, pp.300. Brüssel: European Accounting Association EAA. - ISBN 978-961-240-233-4.