Document Details

Document Type : Article In Journal 
Document Title :
Measuring the Effect of Financial and Nonfinancial Information on Conducting Analytical Procedures for the Purposes of Audit Process Planning: An Experimental Study
قياس أثر المعلومات المالية وغير المالية على أداء الإجراءات التحليلية لأغراض تخطيط عملية المراجعة : دراسة تجريبية
 
Subject : Accounting 
Document Language : Arabic 
Abstract : The objective of this research is to measure and investigate the relative consideration of financial information and nonfinancial information (stable or decline) in two related analytical procedures phases: determining the level of audit scope and generating hypotheses. As noted, prior studies have examined analytical procedures phases separately, although these phases are linked in professional practice.Thirty nine senior auditors participated in an experiment where both financial and nonfinancial information (designed to be of equal strength) were manipulated to indicate either stable or declining conditions. Results indicated that auditors rely more heavily on declining financial information than declining nonfinancial information in establishing audit scope. Nonfinancial information is primarily used as corroborating evidence. The results also revealed that a greater number of hypotheses are generated when financial and nonfinancial information indicate declining trend than a stable condition, and the greatest number of hypotheses are generated when both financial and nonfinancial information signal a decline. This contrasts with the results in the audit scope stage where nonfinancial information are not significant. Thus, auditors appear to focus primarily on financial information when identifying on which accounts to extend audit scope, but seem to more fully consider nonfinancial information when generating hypotheses to explain unexpected fluctuations. 
ISSN : 1319-0997 
Journal Name : Economics and Administration Journal 
Volume : 18 
Issue Number : 2 
Publishing Year : 1425 AH
2004 AD 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
صادق حامد مصطفىSADEK HAMED MOSTAFAResearcher  

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