An empirical investigation of the use of analytical review by external auditors
Document Type
Journal article
Source Publication
British Accounting Review
Publication Date
3-1997
Volume
29
Issue
1
First Page
35
Last Page
47
Abstract
This paper reports the results of the first comprehensive survey to investigate the use of analytical review (AR) by external auditors in the UK. The research indicates that extent of usage varies significantly according to firm size and with each audit stage. Results suggest that the recent Auditing Standard which mandates the use of AR at both the planning and review stages will raise standards of practice; in particular those of smaller firms. More effective audit comfort, rather than competition between firms, was regarded as the most important factor driving the increased use of AR. Straightforward AR techniques were regarded as cost-effective and were found to dominate. Regression analysis, on the other hand, was regarded as cost ineffective and to require expert knowledge.
DOI
10.1006/bare.1996.0034
Print ISSN
08908389
E-ISSN
10958347
Publisher Statement
Copyright © 1997 Academic Press. All rights reserved.
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Fraser, I. A. M., Hatherly, D. J., & Lin, K. Z. (1997). An empirical investigation of the use of analytical review by external auditors. The British Accounting Review, 29(1), 35-47. doi: 10.1006/bare.1996.0034