Audit materiality is a fundamental concept of the external audit process. Guidelines issued by professional standard-setting bodies generally state that the determination of audit materiality is primarily a matter of professional judgement. Over emphasizing professional judgement as predominate guideline might be an attempt to advance and maintain so-called uncertain professional knowledge. This paper examines the proposition that in respect of determining materiality during the audit of company annual financial statements, professional auditing standards suggest the preference of standard-setting bodies not to provide concrete guidelines to the extent it is possible. It does so by means of a comparative analysis between normative principles regarding the determination of audit materiality and the corresponding professional standards. The results provide sufficient evidence to support the research proposition. Audit materiality standards presently have two major shortcomings, namely: over emphasizing the exercise of professional judgement and providing for various alternatives, while normative principles favour a specific approach.
Barac, Karin; Williams, G.(Southern African Institute of Government Auditors, 2016)
Audit committees are expected to communicate effectively as trusted relationships are created when high
quality communication takes place. Very little research has been performed on communication between audit
Plant, Kato(Southern African Institute of Government Auditors, 2008)
Ethics performance should efficiently and effectively be managed and assessed within an organisation to ensure continued stakeholder trust, and the attainment of a mutually sustainable advantage. According to the Professional ...
Barac, Karin; Mdzikwa, J.T.(Southern African Institute of Government Auditors, 2016)
Independence is a cornerstone of the internal audit profession, hence its prominence in the definition of
internal auditing. The quality of the audit committee/internal audit activity relationship is important for ...