The Usefulness of Analytical Procedures: An Empirical Approach in the Auditing Sector in Portugal

Carlos Pinho Ph.D. ()
Additional contact information
Carlos Pinho Ph.D.: Professor Auxiliar, Department Of Social Sciences and Management (DCSG), Universidade Aberta, Portugal,

International Journal of Business and Social Research, 2014, vol. 4, issue 8, 25-33

Abstract: The conceptual conflict between the efficiency and efficacy on financial auditing arises from the fact that resources are scarce, both in terms of the time available to carry out the audit and the quality and timeliness of the information available to the external auditor. Audits tend to be more efficient, the lower the combination of inherent risk and control risk is assessed to be, allowing the auditor to carry out less extensive and less timely auditing tests, meaning that in some cases analytical audit procedures are a good tool to support the opinions formed by the auditor. This research, by means of an empirical study of financial auditing in Portugal, aims to evaluate the extent to which analytical procedures are used during a financial audit engagement in Portugal, throughout the different phases involved in auditing. The conclusions point to the fact that, in general terms and regardless of the size of the audit company and the way in which professionals work, Portuguese auditors use analytical procedures more frequently during the planning phase rather than during the phase of evidence gathering and the phase of opinion formation.

Keywords: Analytical Procedures; Financial Statements; Auditing; Risk Approach (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://thejournalofbusiness.org/index.php/site/article/view/578/458 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lrc:larijb:v:4:y:2014:i:8:p:25-33

Access Statistics for this article

More articles in International Journal of Business and Social Research from LAR Center Press
Bibliographic data for series maintained by Al Hossain ().