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Browsing Gestão e Economia | Artigos em revistas internacionais / Papers in international journals by Subject "Analytical procedures"
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- Analytical procedures: are they useful for auditing purposes? An Iberian Peninsula approachPublication . Pinho, Carlos; Santos, Paula; Martinho, CarlaThe use of analytical audit procedures has been reinforced in view of the increase in the number and complexity of transactions of the audited entities. Previous studies indicate that its use is more significant in the planning and opinion formation phases. Even so, the growing use of software to support audit work has reinforced its usefulness in the phase of collecting audit evidence. To complement those conclusions, the investigation of this article is: in which areas analytical procedures are more suitable for use as evidence gathering? In fact, several studies have been carried out to understand the usefulness of analytical procedures during the different steps of a financial audit, but there is a lack of studies concerning in what financial statements / auditing areas such procedures are more likely to be useful. This study focused on a survey carried out with auditing partners from Big4 audit firms in the Iberian Peninsula, in order to obtain their perception of the areas of work in which analytical procedures are most frequently used as evidence collection. The results obtained, based on statistical descriptive analysis and confidence intervals prepared at a 95% level of confidence, point to the fact that analytical procedures are mostly used in areas of work related to the Profit & Loss Account, particularly in the areas of (i) Sales / Customers, (ii) Purchases / Suppliers, (iii) Personnel Expenses and (iv) Income / Financial Expenses. At a significantly lower level, it is shown that in the areas of the Balance Sheet the use of analytical procedures is considered in a much lesser degree. Furthermore, it appears that the typology of analytical procedures used in these areas correspond mainly to comparison tests, trend analysis, ratio analysis, reasonability tests, all those categorized to be less complex analytical procedures.
- The usefulness of analytical procedures : an empirical approach in the auditing sector in PortugalPublication . Pinho, CarlosThe 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.