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Title: An analysis of the audit of subsequent events in the local scenario
Authors: Cauchi, Mark
Keywords: Auditing -- Standards -- Malta
Financial statements -- Malta
Auditing -- Malta
Issue Date: 2016
Abstract: Purpose: The study examines the manner in which subsequent events are audited in the local context by going through the whole process of the search for the event and evidence, the evidence evaluation and also the resolution phases. Additionally the study identifies the common factors that have an impact on auditors and the audit of subsequent events, as well as highlights the major issues that auditors encounter during such audit task and how these issues are dealt with. Design: Secondary research was conducted in order to get an understanding of what had been discovered in prior research. Moreover in this study a combination of quantitative and qualitative data collection techniques were used. Quantitative research involved the distribution of a questionnaire to numerous Maltese practising auditors, and the data collected was statistically analysed using statistical software. Additionally interviews were conducted in order to support the results obtained from questionnaires, and also to obtain further understanding on the audit of subsequent events in practise. Findings: Results indicate that the audit of subsequent events is an essential part of the whole audit process, and that Maltese auditors follow the requirements prescribed by the standards. This audit task was described as a challenging one, but not an impossible task to carry out. The audit of subsequent events involves a wide-ranging search for evidence, and during such search auditors tend to look at non-routine accounts or transactions. Furthermore the audit of subsequent events is characterised by some factors which have an influence on the proceeding of such audit task, but these can be mitigated through the application of certain safeguards. Lastly, auditors may encounter some difficulties whilst auditing subsequent events, but these do not make this audit task a problematic matter. Conclusion: Maltese auditors maintain a high level of professionalism as they do not simply follow the requirements prescribed by the standard, but sometimes they go beyond, in order to enhance audit quality. Moreover time pressure does not seem to be an issue as auditors prefer having sufficient appropriate evidence rather than closing off the audit on time. A major problem encountered was the fact that clients generally tend to not understand the accounting and auditing requirements relating to subsequent events. It was also identified that there is no upward trend in the occurrence of subsequent events in Malta, but the status quo may change in the future. Value: The results of this study confirm the high level of professionalism shown by auditors in Malta. Moreover having an insight on how Maltese auditors perform the audit of subsequent events may lead to further improvement.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2016
Dissertations - FacEMAAcc - 2016

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