THE IMPACT OF THE NEW INTERNATIONAL STANDARD ON AUDITING REGARDING MATERIALITY ON BUSINESS: EMPIRICAL EVIDENCE ON MEXICO AND SPAIN, 15 IMPACTO COMERCIAL DE LAS NUEVAS NORMAS INTERNACIONALES DE MATERIALIDAD EN AUDITORIA: EVIDENCIA EMPIRICA EN MEXICO Y ESPAÑA

Sergio Ivan Ramirez Cacho, Javier Montoya del Corte and Francisco Javier Martinez Garcia

Revista Internacional Administracion & Finanzas, 2011, vol. 4, issue 4, 15-29

Abstract: International Standard on Auditing 450 raises new challenges for auditors. It imposes, among other things, an increased workload and requires them to use their professional judgment in a more intensive and reflective way. This article presents an empirical analysis of the impact of the International Standard on Auditing 450 on the business relationship between auditors and their clients. The results show that despite a likely increase of qualified opinion reports, the credibility and image of the audited entity does not decrease. The results show that the International Standard on Auditing 450 does not impact the cost of the audit service. The results support the notion that the auditing company may not be faced with loss of customers or a deteriorating customer relationship.

Keywords: Qualitative factors; Audit materiality; International Standards on Auditing; International Financial Crisis (search for similar items in EconPapers)
JEL-codes: G21 G24 M21 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:riafin:v:4:y:2011:i:4:p:15-29

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