Acceso usuarios
Carlos Santos Pinho, Paula Gomes dos Santos, António Eduardo Martins
Purpose: The study aims to reflect on the reasons behind the increasing use of analytical procedures during evidence collection as a way of corroborating the claims made in financial statements.
Theoretical framework: The study develops the problem arising from more complex financial information due to more complex transactions within market players, and develops all the theoretical approach to auditing and the analytical procedures ruled in ISA 520.
Design/methodology/approach: A relevant sample was taken from the auditing market in Portugal, and thus principal component analysis was develop in order to conclude why auditors tend to rely increasingly in analytical procedures, as a source of evidence in auditing approaches.
Findings: The conclusions of this empirical study point to the fact that, in general terms, the increasing use of analytical procedures stems from a risk-based approach to auditing together with reasons that have to do with time pressure and the need to carry out more efficient audits with fewer substantive detail tests as well as improvements in the interpretation of norms applicable to auditing work.
Research, Practical & Social implications: Comprehensive conclusions identify the increasing usage and confidence on analytical procedures by auditors, pointing out objective reasons the justify that fact.
Originality/value: There are several investigations about risk based approach in auditing, but no actual study was found that explores the reasons behind the increasing usage of such procedures, within the International Standards on Auditing (ISA’s). The study thus provides evidence about reliability and relevance of such procedures.
