Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 208

Full Length Research Paper

Quantitatively immaterial audit misstatements matter qualitatively

Audrius Masiulevicius
  • Audrius Masiulevicius
  • Faculty of Economics and Business Administration, Vilnius University, Lithuania.
  • Google Scholar


  •  Received: 07 November 2023
  •  Accepted: 22 January 2024
  •  Published: 29 February 2024

References

Acito AA, Burks JJ, Johnson WB (2019). The Materiality of Accounting Errors: Evidence from SEC Comment Letters. Contemporary Accounting Research 36(2):839-868.
Crossref

 

Altiero EC, Kang YJ, Peecher ME (2022). Motivated perspective taking: Why prompting auditors to take an investor's perspective makes them treat identified audit differences as less material. Contemporary Accounting Research 39(1):339-370.
Crossref

 

Asare KS, Buuren van PJ, Majoor B (2019). The Joint Role of Auditors' and Auditees' Incentives and Disincentives in the Resolution of Detected Misstatements. Auditing: A Journal of Practice and Theory 38(1):29-50.
Crossref

 

Athira A (2021). Literature Review on Methodological Aspects of Audit Independence & Materiality Perspective. AIMS International Journal of Management 15(2):73-87.
Crossref

 

Betti G, Consolandi C, Eccles RG (2018). The relationship between investor materiality and the Sustainable Development Goals: A methodological framework. Sustainability 10(7):2248.
Crossref

 

Bockenholt U (2009). Do randomized-response designs eliminate response biases? An empirical study of non-compliance behavior. Journal of Applied Econometrics 24:377-392.
Crossref

 

Boddy C (2016). Sample size for qualitative research // Qualitative Market Research: An International Journal 19(4):426-432.
Crossref

 

Brennan N, Gray SJ (2005). The Impact of Materiality Accounting Best Kept Secret. Asian Academy of Management Journal of Accounting and Finance 1:1-31.

 

Brown CA (2009). Order Effects and The Audit Materiality Revision Choice. The Journal of Applied Business Research 25(1):21-36.
Crossref

 

Cacho S, Ochoa M, Ramirez M (2012). Qualitative Perspective of Audit Materiality: Empirical Evidence in Mexico and Colombia. Chinese Business Review 11(10):864-872.
Crossref

 

Camargo CP, Cassia R, Luiz A (2023). The relevance of the disclosure of materiality criteria of the audit on investor's decisions. Enfoque: Reflexão Contábil. set-dez2023 42(3):52-68.
Crossref

 

Cekanavi?ius V, Murauskas G (2014). Taikomoji regresin? analiz? socialiniuose tyrimuose. Vilnius: Vilnius University 561 p. ISBN 978-609-459-300-0.

 

Choudhary P, Merkley K, Schipper K (2016). Qualitative Characteristics of Financial Reporting Errors Deemed Immaterial by Managers.
Crossref

 

Choudhary P, Merkley K, Schipper K (2019a). Auditors' Quantitative Materiality Judgments: Properties and Implications for Financial Reporting Reliability. Journal of Accounting Research 57(5):1303-1351.
Crossref

 

Choudhary P, Merkley K, Schipper K (2019b). Do Immaterial Error Corrections Matter? SSRN. 72 p.

 

Choudhary P, Merkley K, Schipper K (2021). Immaterial error corrections and financial reporting reliability. Contemporary Accounting Research 38(4):2423-2460.
Crossref

 

Commerford BP, Hatfield RC, Houston RW (2018). The Effect of Real Earnings Management on Auditor Scrutiny of Management's Other Financial Reporting Decisions. The Accounting Review 93(4):145-163.
Crossref

 

Corte J, Garcia F, Laviada A (2008). La Utilization Efectiva de los Factores Cualitivos de la Materialidad: un Analisis Empirirco Para los Auditores de Cuentas Ejercientes en Espana - The Effective Use of Qualitive Materiality Factors an Empirical Analysis for the Practicing Auditors in Spain. RC-SAR 11(10):101-128.

 

Corte J, Garcia F, Laviada A (2010). Effective use of qualitative materiality factors: evidence from Spain. Managerial Auditing Journal 25(5):458-483.
Crossref

 

Crucean A, Hategan C (2019). The Determinants Factors on Audit Quality: A Theoretical Approach. "Ovidius" University Annals, Economic Sciences Series. 19(2):702-710.

 

David R, Abeysekera I (2021). Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia. Journal of Risk and Financial Management 14:1-20.
Crossref

 

DeFond M, Zhang J (2014). A review of archival auditing research. Journal of Accounting and Economics 58:275-326.
Crossref

 

Deliu D (2018). The new auditor's report and the impact of an eventual financial crisis on the financial audit activity in Europe. Annals of "Eftimie Murgu" University Re?i?a. Fascicle II. 25:37-48.

 

DeZoort FT, Holt TP, Stanley JD (2019). A Comparative Analysis of Investor and Auditor Materiality Judgments. Auditing: A Journal of Practice and Theory 38(3):149-166.
Crossref

 

Eilifsen A, Hamilton EL, Messier Jr WF (2021). The importance of quantifying uncertainty: Examining the effects of quantitative sensitivity analysis and audit materiality disclosures on investors' judgments and decisions. Accounting, Organizations and Society 90:101169.
Crossref

 

Emby C, Pecchiari N (2013). An Empirical Investigation of the Influence of Qualitative Risk Factors on Canadian Auditors' Determination of Performance Materiality. Accounting Perspectives 12(4):281-299.
Crossref

 

Emily G (2019). The impacts of varying survey design on reported trip satisfaction. Transportation Research 60:761-769.
Crossref

 

Goh BW, Li D, Li N, Wang M (2023). Auditor materiality threshold and audit quality - evidence from the revised ISA 700 in the United Kingdom. Accounting Horizons 37(3):147-170.
Crossref

 

Green WJ, Cheng MM (2019). Materiality judgments in an integrated reporting setting: The effect of strategic relevance and strategy map. Accounting, Organizations and Society 73:1-14.
Crossref

 

Grove S, Gray J (2017). Understanding Nursing Research. Building an Evidence-Based Practise. Elsevier 652 p.

 

Hair JF, Black WC, Babin BJ, Anderson RE (2019). Multivariate Data Analysis. Eighth Edition. Harlow: Cengage Learning. 834 p. ISBN: 978-1-4737-5654-0.

 

Hamilton EL (2016). Evaluating the Intentionality of Identified Misstatements: How Perspective Can Help Auditors in Distinguishing Errors from Fraud. Auditing: A Journal of Practice and Theory 35(4):57-78.
Crossref

 

International Standard on Auditing (ISA) 450 (2009). Evaluation of Misstatements Identified During the Audit // International Auditing and Assurance Standards Board (IAASB).

 

Jurkonien? G, Stašaityt? J (2019). "Audit of Financial Reporting Documents: Analysis of Process of Determining Materiality", Buhalterin?s apskaitos teorija ir praktika. P 1.
Crossref

 

Kumar R (2011). Research Methodology. A step-by-step guide for beginners. SAGE Publications, Inc. 366 p. ISBN 978-1-84920-300-5.

 

Lee Y, Strong D, Kahn B, Wang R (2002). AIMQ: a methodology for information quality assessment. Information and Management 40:133-146.
Crossref

 

Legoria J, Melendrez KD, Reynolds JK (2013). Qualitative audit materiality and earnings management. Review of Accounting Studies 18(2):414-442.
Crossref

 

Li A, Michaelides M, Rose M, Garg M (2019). Climate-related Risk and Financial Statements: Implications for Regulators, Preparers, Auditors and Users. Australian Accounting Review 29(3):599-605.
Crossref

 

Libby R, Brown T (2013). Financial Statement Disaggregation Decisions and Auditors' Tolerance for Misstatement. The Accounting Review 88(2):641-665.
Crossref

 

Libby R, Kinney Jr WR (2000). Does Mandated Audit Communication Reduce Opportunistic Corrections to Manage Earnings to Forecasts? The Accounting Review 75(4):383-404.
Crossref

 

Mackevi?ius J, Suba?ien? R (2018). Lietuvos finansinio audito sistema: praeitis, dabartis, ateitis. Vilnius: Vilnius University 406 p.

 

Manita R, Lahbari H, Elommal N (2011). The Impact of Qualitative Factors on Ethical Judgments of Materiality: An Experimental Study with Auditors/ International Journal of Business 16(3):231-243.

 

Massicame O, Inacio HC, Bastos MA (2023). Audit expectation gap in the external audit of banks in Mozambique. International Journal of Financial Studies 11:138.
Crossref

 

McFarland S (1981). Effects of question order on survey responses. Public Opinion Quarterly 45(2):208-215.
Crossref

 

Messier WF Jr, Martinov-Bennie N, Eilifsen A (2005). A review and integration of empirical research on materiality: two decades later. Auditing: A Journal of Practice and Theory 24(2):153-187.
Crossref

 

Ng TBP, Tan HT (2007). Effects of Qualitative Factor Salience, Expressed Client Concern, and Qualitative Materiality Thresholds on Auditors' Audit Adjustment Decisions. Contemporary Accounting Research 24(4):1171-1192.
Crossref

 

Park JJ (2009). Assessing the Materiality of Financial Misstatements. Journal of Corporation Law 34(2):514-566.

 

Peterson J (2019). Failure Study: A Needed Addition to the Accounting Toolkit. The CPA Journal 89(3):6-9.

 

Phillips B, Prybutok V, Peak D (2014). Decision Confidence, Information Usefulness, and Information Seeking Intention in the Presence of Disconfirming Information. Informing Science: The International Journal of an Emerging Transdiscipline 17:1-24.
Crossref

 

Pridotkien? J, Pridotkas R (2012). Reikšming? nefinansini? rodikli? nustatymas vertinant eksporto prekinio kredito rizik?. Economics and Management 17(3):1016-1020.
Crossref

 

Quick R, Zaman M, Mandalawattha G (2023). Auditors' application of materiality: insight from the UK, Accounting Forum 47(1):24-46.
Crossref

 

Razi?nien? D, Verbickait? G (2017). Reikšmingumo samprata finansini? ataskait? audite. Apskaitos ir finans? mokslas ir studijos: problemos ir perspektyvos 11(1):41-51.
Crossref

 

Rebar C, Gersch C, Macnee C, Mccabe S (2010). Nursing Research. Using Research in Evidence-Based Practice. 3rd ed. Wolters Kluwer Health | Lippincott Williams & Wilkins 426 p. ISBN 978-1-60547-730-5.

 

Rupar K (2017). Significance of Forecast Precision: The Importance of Investors' Expectations. Contemporary Accounting Research 34(2):849-870.
Crossref

 

Ruževi?ius J (2016). Magistrant?ros studijos: baigiamojo darbo projekt? (BDP) ir magistro darbo (MD) rašymas. Vilnius: Vilniaus universiteto Ekonomikos fakultetas. 89 p.

 

Schipper K (2007). Required Disclosures in Financial Reports. The Accounting Review 82(2):301-326.
Crossref

 

Schumaher A, Imoniana JO, Murcia FDR (2023). Audit Materiality and Contexts that impact the auditor's judgement. Revista de Contabilidade e Controladoria 15(2):25-54.
Crossref

 

Sjam J, Yadiati W, Winarningsih S, Rosdini D (2020). Audit Quality Influenced by Auditor Competence and Audit Task Complexity. Talent Development and Excellence 12(1):4228-4246.

 

Vasileiou K, Barnett J, Thorpe S, Young T (2018). Characterising and justifying sample size sufficiency in interview-based studies: systematic analysis of qualitative health research over a 15-year period. BMC Medical Research Methodology 18:1-18.
Crossref

 

Vilsanoiu D, Matei S (2014). Determining audit materiality in the banking industry - a knowledge based approach. Procedia Economics and Finance 15:935-942.
Crossref