Auditors' use of analytical procedures in new and matured industries

• Main Authors: Chua, Meng Keong, Ong, Chee Boon, Tan, Theong Hee
• Other Authors: Choo Teck Min
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/55560
• Institution: Nanyang Technological University

There is significant evidence that analytical review procedures (ARPs) are increasingly being used by auditors in the audit process. Tandy (1992) found that there are various factors that affect the extensiveness to which ARP’s are being applied in the audit process. One of the prominent factors she highlighted in her study was the industry factor. We are of the view that auditors vary the extensiveness to which they utilize ARP’s when auditing firms operating in a new industry vis-à-vis firms operating in matured industry. This is because the two categories of industries possess significantly different sets of industry characteristics, which could affect many aspects of the accounts of individual firms.