IDEAS home Printed from https://ideas.repec.org/a/lrc/larijb/v4y2014i8p25-33.html
   My bibliography  Save this article

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

Author

Listed:
  • Carlos Pinho Ph.D.

    (Professor Auxiliar, Department Of Social Sciences and Management (DCSG), Universidade Aberta, Portugal,)

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.

Suggested Citation

  • Carlos Pinho Ph.D., 2014. "The Usefulness of Analytical Procedures: An Empirical Approach in the Auditing Sector in Portugal," International Journal of Business and Social Research, LAR Center Press, vol. 4(8), pages 25-33, August.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:8:p:25-33
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/578/458
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fischer, Michael J., 1996. ""Real-izing" the benefits of new technologies as a source of audit evidence: An interpretive field study," Accounting, Organizations and Society, Elsevier, vol. 21(2-3), pages 219-242.
    2. Mcdaniel, Ls, 1990. "The Effects Of Time Pressure And Audit Program Structure On Audit Performance," Journal of Accounting Research, Wiley Blackwell, vol. 28(2), pages 267-285.
    3. Anderson, John C. & Jennings, Marianne M. & Kaplan, Steven E. & Reckers, Philip M. J., 1995. "The effect of using diagnostic decision aids for analytical procedures on judges' liability judgments," Journal of Accounting and Public Policy, Elsevier, vol. 14(1), pages 33-62.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos Pinho Ph.D., 2014. "The Usefulness of Analytical Procedures: An Empirical Approach in the Auditing Sector in Portugal," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(8), pages 25-33, August.
    2. Ruhnke, Klaus & Schmitz, Stefanie, 2019. "Review engagements – structure of audit firm methodology and its situational application in Germany," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 37(C).
    3. Pernilla Broberg & Torbjörn Tagesson & Daniela Argento & Niclas Gyllengahm & Ola Mårtensson, 2017. "Explaining the influence of time budget pressure on audit quality in Sweden," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(2), pages 331-350, June.
    4. Pongpattrachai, Dichapong & Cragg, Paul & Fisher, Richard, 2014. "IT infusion within the audit process: Spreadsheet use in small audit firms," International Journal of Accounting Information Systems, Elsevier, vol. 15(1), pages 26-46.
    5. Guénin-Paracini, Henri & Malsch, Bertrand & Paillé, Anne Marché, 2014. "Fear and risk in the audit process," Accounting, Organizations and Society, Elsevier, vol. 39(4), pages 264-288.
    6. repec:dau:papers:123456789/3505 is not listed on IDEAS
    7. Yves Gendron & Laura F. Spira, 2009. "What Went Wrong? The Downfall of Arthur Andersen and the Construction of Controllability Boundaries Surrounding Financial Auditing," Contemporary Accounting Research, John Wiley & Sons, vol. 26(4), pages 987-1027, December.
    8. Bierstaker, James & Janvrin, Diane & Lowe, D. Jordan, 2014. "What factors influence auditors' use of computer-assisted audit techniques?," Advances in accounting, Elsevier, vol. 30(1), pages 67-74.
    9. Kathryn Kadous & Yuepin (Daniel) Zhou, 2019. "How Does Intrinsic Motivation Improve Auditor Judgment in Complex Audit Tasks?," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 108-131, March.
    10. Lambert, Tamara A. & Jones, Keith L. & Brazel, Joseph F. & Showalter, D. Scott, 2017. "Audit time pressure and earnings quality: An examination of accelerated filings," Accounting, Organizations and Society, Elsevier, vol. 58(C), pages 50-66.
    11. Janet Morrill, 1996. "Canadian Institute of Chartered Accountants. Professional Judgment and the Auditor," Contemporary Accounting Research, John Wiley & Sons, vol. 13(1), pages 371-378, March.
    12. Federica De Santis, 2018. "Big Data e revisione contabile: uno studio esplorativo nel contesto italiano," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(2), pages 129-154.
    13. Dijk, M. van, 1998. "Litigation and audit quality; two experimental studies," Research Report 98C42, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. Steve Buchheit, 2009. "A comparison of auditor and non-auditor performance evaluations," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(1), pages 22-38, January.
    15. Rajni Mala & Parmod Chand, 2015. "Judgment and Decision‐Making Research in Auditing and Accounting: Future Research Implications of Person, Task, and Environment Perspective," Accounting Perspectives, John Wiley & Sons, vol. 14(1), pages 1-50, March.
    16. Kohler, Hervé & Pochet, Christine & Gendron, Yves, 2021. "Networks of interpretation: An ethnography of the quest for IFRS consistency in a global accounting firm," Accounting, Organizations and Society, Elsevier, vol. 95(C).
    17. Hoffman, Benjamin W. & Sellers, R. Drew & Skomra, Justyna, 2018. "The impact of client information technology capability on audit pricing," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 59-75.
    18. Sweeney, John T. & Suh, Ik Seon & Dalton, Kenneth C. & Meljem, Sylvia, 2017. "Are workpaper reviews preparer-specific?," The British Accounting Review, Elsevier, vol. 49(6), pages 560-577.
    19. Hope, Ole-Kristian & Li, Congcong & Lin, An-Ping & Rabier, MaryJane, 2021. "Happy analysts," Accounting, Organizations and Society, Elsevier, vol. 90(C).
    20. Knechel, W. Robert, 2007. "The business risk audit: Origins, obstacles and opportunities," Accounting, Organizations and Society, Elsevier, vol. 32(4-5), pages 383-408.
    21. Chua, Wai Fong & Fiedler, Tanya & Boedker, Christina, 2024. "Projecting, infrastructuring and calculating: From an In vitro to an In vivo carbon market," Accounting, Organizations and Society, Elsevier, vol. 112(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrc:larijb:v:4:y:2014:i:8:p:25-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al Hossain (email available below). General contact details of provider: http://www.thejournalofbusiness.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.