Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/8481
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dc.date.accessioned2016-02-25T09:31:30Z
dc.date.available2016-02-25T09:31:30Z
dc.date.issued2015
dc.identifier.urihttps://www.um.edu.mt/library/oar//handle/123456789/8481
dc.descriptionM.ACCTY.en_GB
dc.description.abstractPurpose: This dissertation sets out to ascertain and distinguish between the different forms of proposed AAs across various industries, as well as to understand their underlying causes. Additionally, this research was extended to determine those audit practices and procedures that initiate the discovery of the proposed AAs. Complementing the above, an examination of the factors that surround and affect the auditor’s decision to report or waive an AA was performed. Design: The research methodology adopted included a combination of both quantitative and qualitative research methods. Primarily, the latter consisted of 16 semi-structured interviews with a wide spectrum of audit firms. Quantitative data was collected by means of a questionnaire distributed to registered auditors. Findings: Most of the proposed AAs relate to ‘Revenue’, ‘CoS’, ‘Trade Receivables’, ‘Inventories’ and ‘Deferred Tax Liability’. Furthermore, a considerable amount of the proposed AAs are qualitative in nature, with ‘Disclosure’, ‘Classification’ and ‘Presentation’ being amongst those areas highly susceptible to AAs. Findings also show that auditors take a more conservative approach versus a qualitative AA. Some industries are less subject to AAs, however AAs required to ‘close off’ the FSs, prevail in every industry. The lack of a proper accounting set up is the main cause which initiates most of the proposed AAs. Study findings reveal that, to some extent, the latter hinders the use and effectiveness of ‘ToCs’ and ‘APs’, with the result that in the local context ‘ToDs’ remain the preferred audit procedures to discover the proposed AAs. Materiality in its entirety is definitely the ultimate factor that affects AAD. Nevertheless, it is evident that the client-auditor discussions about the proposed AAs and MS’ subjectivity, affect the AAD. Lastly, results show that companies in Malta collaborate a lot with the auditor and adjust the majority of the proposed AAs. Conclusions: One can conclude that there are several inadequacies in the approach and attitude taken by local companies towards the preparation of FSs. These inherently affect the type and amount of the AAs passed; the way AAs are discovered and; the manner in which AAs are communicated, negotiated and finally adjusted. Value: The study is a source of reference to auditors as it gives a synopsis of the high-risk areas across the different classes of industries, thus support auditors in pursuing a more risk based approach to the audit. Moreover, it helps auditors in general to be vigilant about factors likely to impair their adjustment decisions.en_GB
dc.language.isoenen_GB
dc.rightsinfo:eu-repo/semantics/restrictedAccessen_GB
dc.subjectAuditing -- Maltaen_GB
dc.subjectFinancial statements -- Malta -- Auditingen_GB
dc.subjectAuditor's reports -- Maltaen_GB
dc.titleAuditors’ adjustments in the finalisation of audited financial reporting in Maltaen_GB
dc.typemasterThesisen_GB
dc.rights.holderThe copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder.en_GB
dc.publisher.institutionUniversity of Maltaen_GB
dc.publisher.departmentFaculty of Economics, Management and Accountancy. Department of Accountancyen_GB
dc.description.reviewedN/Aen_GB
dc.contributor.creatorParis, Glen
Appears in Collections:Dissertations - FacEma - 2015
Dissertations - FacEMAAcc - 2015

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