Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.

1)( 2*1)

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Impact of Audit Evidence on AuditorS Report

Augustine( &. +nofe( ,hi-io.e /g0a1e( 2uc.3( 4. &de3ile 5 6inglse3 6ueg0e 7e"art1ent of Accounting( 8ni9ersit3 of :enin( :enin ,it3. Abstract ;his stud3 see.s to e1"hasi<e the i1"ortance of audit e9idences( their =ualit3 characteristics and the "rofessional -udg1ent used to 1easure and to e9aluate the1 in order to e>"ress their final audit o"inion. ;here is no 1athe1atical for1ula( neither a s"ecific 1odel in order to e9aluate the =ualit3 of audit e9idences. ;heir =ualit3 de"ends u"on the "rofessional -udg1ent concerning the audit technical standards( the accounting references and ne9ertheless u"on the auditor?s ethics. ;his is one of the reasons for which the financial audit is one of the edges of econo1ical research( highlighting the credi0ilit3 of financial state1ents. ;his stud3 e1"lo3 "ri1ar3 and secondar3 source of data. @uestionnaires were ad1inistered to o0tain infor1ation a0out audit e9idence and auditor re"ort was o0tained through the secondar3 source. ;he e1"irical findings fro1 the 0inar3 logistic regression result re9ealed that sufficienc3 of audit e9idence had a negati9e 0ut insignificant and relia0ilit3 of audit e9idence had a "ositi9e coefficient sign 0ut insignificant. ;he low 9alue of the /cfadden Rs=uared indicated that the null h3"otheses were re-ected and acce"tance of the alternati9e h3"otheses. ;he stud3 suggested that further e1"irical wor. should 0e conducted in this area. Keywords: Auditor re"ort( Audit e9idence( Audit o"inion and Auditing standard. 1.1 INTR !"#TI N Auditing is a s3ste1atic "rocess of o0-ecti9el3 o0taining and e9aluating e9idence regarding assertions a0out econo1ic actions and e9ents to ascertain the degree of corres"ondence 0etween those assertions and esta0lished criteria and co11unicating the results to interested users A1erican Accounting Association( 1972#. In order to gi9e an assurance a0out the financial state1ents of an entit3( the auditor recei9es assertions fro1 the 1anage1ent a0out these re"orts. ;hese assertions cannot 0e trusted and the auditor needs to collect e9idence that confir1s that the infor1ation "roduced 03 the 1anage1ent is accurate. Audit e9idence includes written and electronic infor1ation that "er1its the auditor to reach conclusions through reasoning. In this res"ect( audit e9idence hel" auditors to esta0lish a starting "oint fro1 which an auditor e>"resses audit o"inion on the accounts and financial o"erations of the co1"an3 0eing audited. Such e9idence is o0tained fro1 tests that deter1ine how well accounting controls wor. and fro1 tests of accounting details such as co1"leteness and disclosure of infor1ation#. Auditors( 03 doing audits in accordance with the generall3 acce"ted auditing standards 4AAS#( will attest to the fairness of cor"orate financial re"orts 03 detecting and re"orting 1aterial de9iations fro1 the generall3 acce"ted accounting standards to 9arious sta.eholders lin( 2iu( 5 Aang( 2**9#. Bence( inde"endent audit can decrease the as311etr3 infor1ation and agenc3 "ro0le1. Audit o"inion a0out accounting infor1ation 03 the decrease of agenc3 "ro0le1 can "ro9ide the usefulness of accounting infor1ation to the ca"ital 1ar.et "artici"ants. ;he usefulness of accounting infor1ation can effect on the decision 1a.ing of users. So( in order to increase the usefulness of accounting infor1ation( auditors add the assurance of financial infor1ation which it can results to increase the 9alue rele9ance. Bence( when audit re"ort has 9alue rele9ance( it can i1"ro9e decisions of users a0out rational in9est1ent( credit( and etc. ;hus( it e>"ected that audit re"ort i.e. un=ualified audit re"ort or other audit re"ort# can effect on "ositi9el3 the 9alue rele9ance and a "ositi9e signal send to ca"ital 1ar.et. 1.$ %R &'E( STATE(ENT Recent financial state1ent 1ani"ulations such as 03 +nron( Aorldco1( or !ar1alat re9ealed that infor1ation "ro9ided 03 financial state1ents does not alwa3s corres"ond with realit3. At least in the 1ost recent case of !ar1alat( as well as in the cases of ,o1road and Flow;e> in 4er1an3( 1anage1ent counterfeited docu1ents and recei"ts for non-e>istent assets or transactions. ;hese scandals illustrated clearl3 that it is not sufficient to rel3 on docu1ents( recei"ts( or 1anage1ent re"resentations to 0e what the3 see1 at first glance. Rather( the auditor 1ust go 0e3ond the faCade and =uestion the truth of an3 infor1ation recei9ed. Res"onding to these de9elo"1ents( standard setters ha9e tightened "rofessional auditing standards. ;heir reaction was to strengthen the re=uire1ent of "rofessional s.e"ticis1( of a critical e9aluation of audit e9idence( and of e>"licitl3 considering the "ossi0ilit3 of fraud A8 )16( 2**D#. Inde"endent of "ossi0le 1ani"ulations( auditors are re=uired to -udge whether financial state1ents "ro9ide a true and fair 9iew of the audited entit3?s financial "osition( results of o"erations( and cash flows ISA 2**.2 5 1%( 2**D#. Inde"endent audits enhance the credi0ilit3 of cor"orate financial re"orts and assist in9estors to 1a.e rational decisions in the ca"ital 1ar.et. ;he users are "ercei9ed to gain 0enefits fro1 the increased credi0ilit3. ;hese 0enefits are t3"icall3 considered to 0e that the =ualit3 of in9est1ent decisions are i1"ro9ed when the3 are 92

Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.1)( 2*1)

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0ased on relia0le infor1ation. ;herefore( this stud3 atte1"t to find answers to the following research =uestionsE i# ;o what e>tent does sufficient audit e9idence affect audit re"ortF ii# Is there an3 relationshi" 0etween relia0ilit3 of audit e9idence and audit re"ortF 1.) &*E#TI+ES , T-E ST"!. ;he 0road o0-ecti9e of this stud3 is to "ro9ide e1"irical e9idence on the i1"act of audit e9idence on audit re"ort. ;he s"ecific o0-ecti9es will includeE i# ;o e9aluate the i1"act of sufficient audit e9idence on audit re"ort. ii# ;o in9estigate the influence of relia0ilit3 of audit e9idence on audit re"ort. 1./ -.% T-ESES !E+E' %(ENT ;he following h3"otheses are for1ulated to 0e tested B&E Sufficient audit e9idence has no significant i1"act on audit re"ort. B&E Relia0ilit3 of audit e9idence has no significant i1"act on audit re"ort. 'ITERAT"RE RE+IE0 $.1 A"!IT RS RE% RT Audit re"ort is a 1eans 03 which the auditors e>"ress their o"inion on the truth and fairness of a co1"an3?s financial state1ents for the 0enefit of "rinci"all3 of the shareholders( 0ut also for other users Adeni3i( 2**%#. Auditors? re"ort on financial state1ents should contain a clear e>"ression of o"inion( 0ased on re9iew and assess1ent of the conclusion drawn fro1 e9idence o0tained in the course of the audit. ;he 9arious changes in accounting( financial re"orting and auditing were all designed to "ro9ide "rotection to in9estors. ;his is 0eing achie9ed 03 i1"osing a dut3 of accounta0ilit3 u"on the 1anagers of a co1"an3 ,rowther 5 Jatana( 2**D#. In essence( auditing is used to "ro9ide the needed assurance for in9estors when rel3ing on audited financial state1ents. /ore "recisel3( the role of auditing is to reduce infor1ation as311etr3 on accounting nu10ers( and to 1ini1i<e the residual loss resulting fro1 1anagers? o""ortunis1 in financial re"orting. Audit e9idence needs to su""ort the auditors o"inion in the auditorGs re"ort and the audit file should indicate how the auditor has arri9ed at their audit o"inion. $.$ S",,I#IENT A"!IT E+I!EN#E AN! A"!IT RE% RT Audit e9idence is the infor1ation o0tained 03 the auditor in arri9ing at the conclusions on which the audit o"inion is 0ased Adeni3i( 2**%#. Audit e9idence will co1"rise of source docu1ents and accounting records underl3ing the financial state1ents and corro0orating infor1ation fro1 other sources. Bowe9er( the auditor should o0tain sufficient a""ro"riate audit e9idence to 0e a0le to draw reasona0le conclusions on which to 0ase the audit o"inion in order to arri9e at =ualit3 audit re"orting. Audit e9idence is usuall3 "ersuasi9e rather conclusi9e( so different sources are e>a1ined 03 the auditors Adeni3i( 2**%#. According to the ISA( audit e9idence need to 0e Gsufficient? and Ga""ro"riate?. Sufficient refers to the =uantit3( as well as the =ualit3( of the audit e9idence. A""ro"riateness of audit e9idence is related to the nature and ti1ing of audit "rocedures. A""ro"riateness the =ualit3 of e9idence# is achie9ed if the e9idence o0tained is rele9ant and relia0le. Also( the audit e9idence should 0e sufficientl3 docu1ented so that the3 can 0e used 0efore issuing the auditorHs re"ort. Audit e9idence needs to su""ort the auditors o"inion in the auditorGs re"ort and the audit file should indicate how the auditor has arri9ed at their audit o"inion. Regarding this as"ect( in the "ast audit fir1s li.e Arthur Andersen in +nron scandal# ha9e 0een accused 03 "u0lic o"inion and regulator3 0odies 0ecause the audit e9idence that the3 ha9e o0tained has not 0een sufficient or a""ro"riate enough to -ustif3 their audit o"inion. Auditors 1ust ensure that when "lanning and "erfor1ing audit "rocedures( the3 0elie9es that these "rocedures are ade=uate enough in order to o0tain sufficient and a""ro"riate audit e9idence 0ecause audit "rocedure and audit e9idence are not the sa1e I auditors use "rocedures to generate e9idence#. &ther as"ects that auditors need to consider are rele9ance and relia0ilit3 of the infor1ation to 0e used as audit e9idence ,ollin Ste9e( ISA D**#. $.) RE'IA&I'IT. , A"!IT E+I!EN#E AN! A"!IT RE% RT ;he rele9ance of the audit e9idence should 0e considered in relation to the o9erall audit o0-ecti9e of for1ing an o"inion and re"orting on the financial state1ent Adeni3i(2**%# It is necessar3 to 9erif3 nonres"onses with alternati9e relia0le e9idence of the outstanding 0alance in order to 1aintain the integrit3 of the sa1"le where "ositi9e confir1ations are used. Such e9idence includes deli9er3 notes signed for 03 the custo1er( written custo1er sales orders and( if su0se=uentl3 "aid( a re1ittance ad9ice acco1"an3ing the "a31ent identif3ing the s"ecific in9oices 0eing "aid Florea( 2*1*#. ,reditors are 1uch less fre=uentl3 confir1ed than de0tors. ;he auditor alread3 has e>ternal e9idence in the for1 of su""lier in9oices and state1ents. Although held 03 the entit3 and thus "otentiall3 at ris. fro1 0eing 1ani"ulated( the3 are li.el3 to "ro9ide sufficient a""ro"riate e9idence in the a0sence of an3 sus"icious circu1stances. In addition( the "rinci"al assertion 9erified 03 confir1ation e9idence would 0e that of co1"leteness. ;he a9aila0le "o"ulation creditor 0alances recorded

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03 the entit3#( is not a suita0le starting "oint for selecting a sa1"le for confir1ation when 9erif3ing co1"leteness. If ti1e is a9aila0le( auditors tend to "refer to use the co1"le1entar3Jreci"rocal "o"ulation of "urchases or "a31ent transactions recorded after the "eriod end# when 9erif3ing the co1"leteness of recorded creditors. In 1an3 countries( the auditing "rofession has co1e to a 1utual agree1ent with the 0an.ing industr3 on the 1ethod to 0e e1"lo3ed in see.ing confir1ations. A standardi<ed for1 is co11onl3 used with o"en =uestions for the 0an. to co1"lete. ;he e9idence should 0e relia0le 0ecause 0an.s usuall3 1aintain a high le9el of internal control o9er records of custo1er 0alances Florea( 2*1*#. 8nderstanding how "ersuasi9eness and se=uential "resentation of audit e9idence affect auditors? -udg1ents is "articularl3 i1"ortant in situations where there is conflicting "ositi9e and negati9e# audit e9idence of 9ar3ing strengths. For e>a1"le( consider a situation where the auditor is "resented with "ositi9e audit e9idence fro1 a source with high relia0ilit3 followed 03 negati9e audit e9idence fro1 a source with low relia0ilit3. ;he literature suggests two different outco1es. Studies ha9e shown 0oth that auditors "lace greater weight on negati9e e9idence co1"ared to "ositi9e e9idence Asare( 1992K /c/illan 5 Ahite( 199)# and that the3 are sensiti9e to source relia0ilit3 Birst( 199%K 4oodwin 5 ;rot1an( 1996K 4oodwin( 1999#. Ahether the direction "ositi9e or negati9e# or source relia0ilit3 high or low# of the "ieces of audit e9idence "la3s i1"ortant role in affecting the =ualit3 of audit re"ort. !rior "s3chological literature shows that indi9iduals "lace 1ore weight on e9idence fro1 a 1ore relia0le source when "resented with conflicting e9idence Rosen0au1 5 2e9in( 196$#. In auditing conte>ts( when "resented with conflicting audit e9idence( auditors are e>"ected to "lace greater weight on audit e9idence fro1 a 1ore relia0le source. Also( legal and "rofessional re=uire1ents e1"hasi<e source relia0ilit3 factors. 7es"ite auditors 0eing concerned with financial state1ent errors going undetected( the3 are li.el3 to "a3 1ore attention to source relia0ilit3 factors when "resented with conflicting e9idence. ;his situation will occur 0ecause auditors do not face a significant increase in "ercei9ed ris. of legal lia0ilit3 for "lacing lower weight on conflicting audit e9idence fro1 a less relia0le source co1"ared to conflicting audit e9idence fro1 a 1ore relia0le source. ). (ET- ! ' 1. ;his stud3 is an e>"lanator3 stud3. Saunders( 2ewis and ;hornhill 2**)# stated that studies that esta0lish causal relationshi"s 0etween 9aria0les 1a3 0e ter1ed e>"lanator3 studies. ;he3 e1"hasi<ed that this has to do with stud3ing a situation or a "ro0le1 in order to e>"lain the relationshi"s 0etween 9aria0les. ;his research strateg3 was considered necessar3 0ecause of its a0ilit3 to 9iew co1"rehensi9el3 and in detail the 1a-or =uestions raised in the stud3. ;he stud3 used 0oth "ri1ar3 and secondar3 sources of data. A =uestionnaire was used for soliciting infor1ation a0out the inde"endent 9aria0les Audit e9idence infor1ation#. ,losed ended =uestions that would 0e used in the =uestionnaires are dichoto1ous =uestions that is =uestions with o"tions to choose either GLes? or GNo?# and 2i.ert t3"e =uestions which refer to a .ind of 1ulti"le choice =uestion that 1easures the intensit3 with which agrees to a state1ent 1ade. &ne hundred =uestionnaires are ad1inistered to 1e10ers of organi<ations who are auditors and accountants. ;he de"endent 9aria0le is audit re"ort. Since the de"endent 9aria0le is on audit re"ort of =uoted co1"anies in Nigeria( "o"ulation of the stud3 is 1ade u" of co1"anies listed on the floor of the Nigerian Stoc. +>change NS+# for the "eriod 2**7 to 2*11. A sa1"le of twent3 2*# audited financial re"orts of =uoted co1"anies for the "eriod 2**7 to 2*11 Lear-end was used. ( !E' S%E#I,I#ATI N ;he h3"otheses for1ulated for this stud3 were tested with the use of logistic regression 1odel. ;his was used to e>a1ine the relationshi" 0etween de"endent and inde"endent 9aria0les. According to Field 2***#( logistic regression is 1ulti"le regression 0ut with an outco1e 9aria0le that is a categorical dichoto13 and "redictor 9aria0les that are continuous or categorical. ;he logistic regression for this stud3 ta.es the for1E A87I;R M N* O N1:SA87+ O N2RA87+ O P %ERATI NA'I2ATI N , +ARIA&'ES N1- N2 M ,oefficients of e>"lanator3 9aria0les P M +rror ter1 o9er cross-section and ti1e !ependent variab3e A87I;R M Audit re"ort. ;his 9aria0le is dichoto1ous in nature. Audit o"inion was used as "ro>3 for audit re"ort. G1? If 8n=ualified audit o"inion is re"orted otherwise G*?. Independent variab3es SA87+ M Sufficient audit e9idence RA87+ M Relia0ilit3 of audit e9idence 2i.ert t3"e =uestions which refer to a .ind of 1ulti"le choice =uestions that 1easures the intensit3 with which agrees to a state1ent 1ade. G1? for agree( G2? for undecided and G)? for disagree as a "ro>3 for the inde"endent 9aria0les.

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Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.1)( 2*1)

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/. !IS#"SSI N , RES"'T ;he anal3<ed data was "resented using descri"ti9e statistics( fre=uenc3 ta0les and a ste"wise logistic regression techni=ue. ;he descri"ti9e statistics allow the generali<ation of the data to gi9e an account of the structure of the "o"ulation as re"resented 03 the sa1"le. %.1 !E( 1RA%-I# #-ARATERISTI#S , RES% N!ENTS Bundred 1**# =uestionnaires were gi9en out to res"ondents 0ut onl3 7* were returned and usa0le( and su0se=uentl3 anal3<ed. SE4 !ISTRI&"TI N , RES% N!ENTS SE4 ,RE5"EN#. %ER#ENTA1E (A'E /6 78 ,E(A'E $1 )8 T TA' 78 1889 ;he ta0le a0o9e shows the gender categories of the 7* res"ondents who returned usa0le co"ies of distri0uted =uestionnaires of who1 %9 7*Q# were 1ales and 21 )*Q# were fe1ales. ;his shows that 1a-orit3 of the res"ondents were 1ales. ##"%ATI NA' !ISTRI&"TI N , RES% N!ENTS ##"%ATI N ,RE5"EN#. %ER#ENTA1E A"!IT R $: /8 A## "NTANT /$ ;8 T TA' 78 1889 ;a0le a0o9e shows the occu"ational distri0ution of the 9alid =uestionnaire. Fro1 the res"ondents 9iew( 2$ %*Q# were re"resented 03 auditor and %2 6*Q# of the1 were accountant. !ISTRI&"TI N , RES% N!ENTS &. (ARITA' STAT"S (ARITA' STAT"S ,RE5"EN#. %ER#ENTA1E (ARRIE! /$ ;8 SIN1'E $1 )8 !I+ R#E! 7 18 T TA' 78 1889 ;he a0o9e ta0le shows the 1arital status of the res"ondents who returned 9alid =uestionnaires distri0uted. 21 )*Q# of the res"ondents were single( %2 6*Q# were 1arried and 7 1*Q# of the1 were di9orced. A#A!E(I# STAT"S , RES% N!ENTS A,A7+/I, FR+@8+N,L !+R,+N;A4+ 7+4R++ 2$ %* /AS;+R )D D* 7&,;&RA;+ 7 1* ;&;A2 7* 1**Q ;he ta0le a0o9e shows the acade1ic status of the res"ondents. 2$ %*Q# of the res"ondents had first degree( )D D*Q# of the1 had 1aster degree and 7 1*Q# of the res"ondents had doctorate degree. /.$ ANA'.SIS , RE1RESSI N RES"'T ;a0le 1 2ogistic Regression /odel of Sufficienc3 and Relia0ilit3 of Audit +9idence and Audit Re"ort. +R!ANA;&RL ,&+FFI,I+N; S-S;A;IS;I, !R&:-'A28+ 'ARIA:2+ ,&NS;AN; -*.161* -*.2**D *.$%1* SA87+ -*.6%9% -1.2%61 *.2127 RA87+ *.)D79 *.997$ *.)1$) /cFadden R2M *.*)1)9) 2R StatisticM 2.9)*D7)( !ro0 2R Stat#. M *.2)1*12 Fro1 ta0le 1 a0o9e( it would 0e o0ser9ed fro1 the coefficient of deter1ination /cFadden R2 # 9alue of *.*)1)9) show that a0out )Q of the s3ste1atic 9ariation in the de"endent 9aria0le is -ointl3 e>"lained 03 the inde"endent 9aria0les. ;his 1eans that the 1odel is not good fit since al1ost 97Q of s3ste1atic 9ariation in the 9aria0les o9er the "eriods is not e>"lained. ;he 2R statistic 9alue of 2.9)*D7) and its associated "- 9alue *.2)1*12 show that the 1odel on o9erall is not statisticall3 significant. ;his 1eans that the coefficients of the inde"endent 9aria0les are not statisticall3 different fro1 <ero. Following the a0o9e( it should 0e noted that Sufficienc3 of audit e9idence SA87+# has a negati9e coefficient 0ut insignificant i1"act on Audit re"ort A87I;R# and the 9aria0le Relia0ilit3 of audit e9idence RA87+# has a "ositi9e coefficient sign 0ut insignificant. ;he insignificant of the 9aria0les is that the S-test was failed 03 the 9aria0les. ;he low 9alue of the /cFadden R2 re9ealed that the null h3"otheses is acce"ted there03 leading to the

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Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.1)( 2*1)

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re-ection of the alternati9e h3"otheses. <. # N#'"SI N AN! RE# ((EN!ATI N In an audit( 1ost wor. is affected 03 auditor to o0tain and e9aluate e9idence( using 9arious "rocedures ins"ection( o0ser9ation( in9estigation( confir1ation( recalculation( re-"erfor1ance( etc.# in arri9ing at audit o"inion. &0tain audit e9idence sufficient and a""ro"riate# is one of the 1ost i1"ortant ste"s that auditors should 1a.e and that is crucial in sha"ing the o9erall standard go9erning audit e9idence. Audit e9idence should 0e "ro"erl3 docu1ented to ensure that the o0-ecti9e of the audit was achie9ed. If the o0-ecti9es were not achie9ed( the wor.ing "a"ers 1ust contain docu1entation of failure. Also( the use of e>"erts could 0e considered as audit e9idence and auditors 1ust .now when their e>"ertise is e>ceeded. ;his stud3 therefore suggested that further e1"irical wor. should 0e done this area i1"act of audit e9idence on audit re"ort#. RE,EREN#ES Adeni3i( A. A 2**%#. Auditing and Investigations. 2agosE +2-;&7A 'entures 2i1ited. A1erican Accounting Association 1972#. Asare( S. 1992#. ;he auditor?s going concern o"inion decisionE Interaction tas. 9aria0les and the se=uential "rocessing of e9idence. The Accounting Review, 67( )79-)9). A8 11*E Res"onsi0ilities and Functions of the Inde"endent Auditor. New Lor. A8 )16E ,onsideration of Fraud in a Financial State1ent AuditK ed.E AI,!AK New Lor. 2**D as of June 1st( 2**D#K 8R2E htt"EJJwww.aic"a.orgJdownloadJ1e10ersJdi9JauditstdJA8-**)16.!7F( consulted on &cto0er 17th( 2**D. ,rowther( 7.( 5 Jatana( R. 2**D#. Agenc3 theor3 E a cause of failure in cor"orate go9ernance. InE 7. ,rowther and R. Jatana eds.# International dimensions of corporate social responsibility, 1( 1)D-1D2. Florea R.( ,onta0ilitate consolidatT Ui auditul gru"urilor de societTVi( +d. ;ehno"ress( IaUi( 2*1* Field( A. 2***#. Discovering statistics: Using S SS for !indows. 2ondonE Sage !u0lications 4oodwin( J. 1999#. ;he effects of source integrit3 and consistenc3 of e9idence on auditor -udg1ents. A "ournal of ractice and Theory( 1$ 2*#. 4oodwin( J.( 5 ;rot1an( ;. 6. 1996#. Factors affecting the audit of re9alued non-current assetsE Initial "u0lic offerings and source relia0ilit3# Accounting and $inance, 1D1-17*. Birst( 7. +. 199%#. Auditors sensiti9it3 to source relia0ilit3. "ournal of accounting research,)2 1#( 1-22. 2in. S.J.( 2iu. /.( 5 S. Aang. 2**9#. /ar.et I1"lications of the Audit @ualit3 and Auditor /c/illan( J. J.( 5 Ahite( R.A. 199)#. Auditors? 0elief re9isions and e9idence searchE ;he effect of h3"othesis fra1e( confir1ation 0ias( and "rofessional s.e"ticis1. The Accounting Review,6$ )#( %%)-%6D. /ellers( :.( 5 :irn0au1( /. 19$)#. ,onte>tual effects in social Rosen0au1( /. +.( and I. !. 2e9in( 196$#. I1"ression for1ation as a function of source credi0ilit3 and order of "resentation of contradictor3 infor1ation. "ournal of ersonality and Social sychology(1* 2#(167-17%. Saunders( /.( 2ewis( !.( 5 ;hornhill( A. 2**)#. Research methods for business students, )rd ed.#. +nglandE !earson +ducation 2i1ited.
7e"endent 'aria0leE A87I;R /ethodE /2 - :inar3 2ogit @uadratic hill cli10ing# 7ateE *7J1*J1) ;i1eE 1DE)9 Sa1"leE 1 7* Included o0ser9ationsE 7* ,on9ergence achie9ed after % iterations ,o9ariance 1atri> co1"uted using second deri9ati9es 'aria0le , SA87+ RA87+ /cFadden R-s=uared ,oefficient -*.161*21 -*.6%9%61 *.)D7911 *.*)1)9) Std. +rror *.$*279) *.D211D6 *.)D$67) <-Statistic -*.2**D76 -1.2%619) *.997$76 !ro0. *.$%1* *.2127 *.)1$) *.)$D71%

/ean de"endent 9ar

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S.7. de"endent 9ar A.ai.e info criterion Schwar< criterion Bannan-@uinn criter. Restr. de9iance 2R statistic !ro0 2R statistic# &0s with 7e"M* &0s with 7e"M1

*.%9*27$ 1.)77%)% 1.%7)79$ 1.%1D711 9).)D*9) 2.9)*D7) *.2)1*12 %) 27

S.+. of regression Su1 s=uared resid 2og li.elihood 7e9iance Restr. log li.elihood A9g. log li.elihood

*.%$$2D2 1D.9721) -%D.21*1$ 9*.%2*)6 -%6.67D%7 -*.6%D$6*

;otal o0s

7*

A87I;R

SA87+

RA87+

* * 1 1 * 1 1 1 * * * 1 * * * 1 1 * 1 * 1 * * * * 1 1 1 * * 1

1 1 1 1 1 1 1 1 1 1 2 1 1 1 ) 1 1 1 1 1 1 1 1 ) 1 1 1 1 1 1 1

2 2 1 1 1 1 ) ) ) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ) 1 2 ) 1 1 1 1

97

Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.1)( 2*1)

www.iiste.org

1 1 1 1 * * 1 1 1 * 1 1 1 1 1 * * 1 * * * * * * * * * * * * * * * * * * * * *

1 1 2 1 1 1 1 2 1 1 1 1 1 2 1 1 1 1 ) 1 1 1 1 1 1 1 1 1 1 1 ) ) 1 1 1 1 1 1 )

1 1 1 1 1 1 1 1 1 ) ) 1 1 1 1 1 ) ) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

@8+S;I&NNAIR+ ;his =uestionnaire is designed to elicit infor1ation fro1 res"ondents on the i1"act of audit e9idence on audit re"ort. Infor1ation o0tained will 0e treated in strict confidence and in fact( it is an acade1ic e>ercise. Accurate su""l3 of infor1ation would 0e highl3 a""reciated. S+,;I&N A 9$

Research Journal of Finance and Accounting ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline# 'ol.%( No.1)( 2*1)

www.iiste.org

1. Se>E /ale W X Fe1ale W X 2. &ccu"ationE Auditor W X Accountant W X ). /arital StatusE /arried W X Single W X 7i9orced W X %. Acade1ic StatusE 7egreeW X( /aster 7egree W X7octorate W X S+,;I&N : !lease tic. as a""ro"riate. 1. Aould 3ou agree that audit re"ort is a written co11unication of the results of the audit underta.enF a# Agree W X 0# 8ndecided W X c# 7isagree W X. 2. ;i1el3 audit re"ort adds 9alue to the entit3. a# Agree W X 0# 8ndecided W X c# 7isagree W X. ). Is sufficienc3 a 1easure of the =ualit3 of audit e9idenceF a# Les W X 0# No W X. c# 7on?t .now W X. %. Audit e9idence is necessar3 to su""ort the auditor?s o"inion and re"ort. a# Les W X 0# No W X c# don?t .now W X. D. 7o 3ou agree that infor1ation which ser9ed as audit e9idence 1a3 0e "re"ared using wor. of a 1anage1ent e>"ertF a# Agree W X 0# 8ndecided W X c# 7isagree W X. 6. 7o 3ou agree that e>ternal source of e9idence is 1ore relia0le than that of o0tained fro1 the entit3?s recordF a# Agree W X 0# 8ndecided W X c# 7isagree W X. 7. Audit re"orting should co1"l3 with a""lica0le laws and regulation. a# Les W X 0# No W X c# don?t .now W X. $. 7o 3ou agree that sufficient audit e9idence has a strong i1"act on audit re"ortF a# Agree W X 0# 8ndecided W X c# 7isagree W X. 9. Are wor.ing "a"ers good e>a1"les of audit e9idenceF a# Les W X 0# No W X c# I don?t .now W X. 1*. Audit e9idence o0tained fro1 entit3?s record is 1ore relia0le when internal control s3ste1 o"erates effecti9el3. a# Les W X 0# No W X c# don?t .now W X. 11. ;he =ualit3 of audit e9idence needed is affected 03 the auditors? assess1ent of ris.s of 1aterial 1isstate1ent. a# Les W X 0# No W X c# I don?t .now W X. 12. 7oes sufficient audit e9idence o0tained hel" to reduce audit ris.F a# Les W X 0# No W X c# I don?t .now W X. 1). Aould 3ou agree that relia0ilit3 of audit e9idence influence =ualit3 audit re"ortingF a# Agree W X 0# 8ndecided W X c# 7isagree W X. 1%. Is there an3 unit of 1easuring the a1ount of audit e9idenceF a# Les W X 0# No W X c# I don?t .now W X. 1D. 7oes audit e9idence useful in esta0lishing an accurate "resentation of the financial state1entsF a# Les W X 0# No W X c# I don?t .now W X. 16. Audit e9idence in the for1 of docu1ent and written re"resentation is 1ore relia0le than oral re"resentation. F a# Les W X 0# No W X c# I don?t .now W X. 17. 7o 3ou agree that sufficienc3 of audit e9idence is deter1ined 03 the si<e of the sa1"le selected 03 the auditorF a# Agree W X 0# 8ndecided W X c# 7isagree W X.

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