Auditor materiality threshold and audit quality: Evidence from the Revised ISA 700 in the United Kingdom

• Main Authors: GOH, Beng Wee, LEE, Kiat Bee Jimmy, LI, Dan, LI, Na, WANG, Muzhi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Materiality threshold; audit report; audit quality; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/2026; https://ink.library.smu.edu.sg/context/soa_research/article/3053/viewcontent/Auditor_materiality_thresholds_and_audit_quality___SSRN.pdf
• Institution: Singapore Management University

Using a broad sample of U.K. firms that are required to disclose auditor materiality thresholds under the International Standards on Auditing (U.K. and Ireland) 700, we examine whether the auditor materiality threshold is associated with audit quality. We document that a lower materiality threshold...