The Effectove Use of Qualitative Materiality Factores an Empirical Analysis for the Practicing Auditors in Spain
Javier Montoya Del Corte
Francisco Javier Martínez García
Ana Fernández Laviada
International organizations such as the SEC (1999) and the IFAC (2006) have shown a great concern about the serious consequences that misapplication of materiality has on the quality of financial information published by companies. The aim of this paper is to analyze the predisposition of Spanish auditors towards issuing qualified audit reports due to uncorrected misstatements lower than the quantitative materiality levels if they relate to some qualitative factors. The results obtained, based on the responses from 338 practising professionals, allow to identify three groups of auditors with different degree of conservatism, that is, with different inclination to the effective use of the qualitative side of materiality (permissive, moderate and strict). Furthermore, variables as the age, academic training, firm turnover, and number and kind of companies audited, assist to explain the auditors’ propensity to belong to one of these groups.
Materiality, Quantitative Levels or Thresholds, Qualitative Factors, Audit Report, International Standards on Auditing.
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