Appendix A: Select Relevant Table for Chapter 5

Siddhartha Sankar Saha (Department of Commerce, University of Calcutta, Kolkata, India)

Mitrendu Narayan Roy (Goenka College of Commerce and Business Administration, University of Calcutta, Kolkata, India)

Quality Control Procedure for Statutory Financial Audit

ISBN: 978-1-78714-227-5, eISBN: 978-1-78714-226-8

Publication date: 30 June 2017

pdf (66 KB) ePub (1.1 MB)

Citation

Saha, S.S. and Roy, M.N. (2017), "Appendix A: Select Relevant Table for Chapter 5", Quality Control Procedure for Statutory Financial Audit, Emerald Publishing Limited, Leeds, pp. 260-271. https://doi.org/10.1108/978-1-78714-226-820171010

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Emerald Publishing Limited

Appendix A: Select Relevant Table for Chapter 5

Table A1:

Result of Kolmogorov–Smirnov Test.

	Category	Kolmogorov–Smirnov
		Statistic	DF	p Value	Decision Rule	Decision
Proper designing of quality control policies	CA	0.395	226	0.000	H₀ < 0.05	Rejected
	Student	0.292	146	0.000	H₀ < 0.05	Rejected
Integrity of all the partners in an accounting firm	CA	0.329	226	0.000	H₀ < 0.05	Rejected
Integrity of all the partners in an accounting firm	Student	0.381	146	0.000	H₀ < 0.05	Rejected
Education and training of new members in a firm	CA	0.390	226	0.000	H₀ < 0.05	Rejected
Education and training of new members in a firm	Student	0.210	146	0.000	H₀ < 0.05	Rejected
Stringent policies on punishment on breach of quality	CA	0.302	226	0.000	H₀ < 0.05	Rejected
Stringent policies on punishment on breach of quality	Student	0.262	146	0.000	H₀ < 0.05	Rejected
Insufficiency in information provided by engagement partner to firm on audit client	CA	0.311	226	0.000	H₀ < 0.05	Rejected
	Student	0.302	146	0.000	H₀ < 0.05	Rejected
Long association with audit client	CA	0.266	226	0.000	H₀ < 0.05	Rejected
Long association with audit client	Student	0.259	146	0.000	H₀ < 0.05	Rejected
Mandatory checking of credibility of the client	CA	0.392	226	0.000	H₀ < 0.05	Rejected
Mandatory checking of credibility of the client	Student	0.276	146	0.000	H₀ < 0.05	Rejected
Reduction of maximum period of association from 7 to 3 years	CA	0.286	226	0.000	H₀ < 0.05	Rejected
	Student	0.205	146	0.000	H₀ < 0.05	Rejected
Formal training to each member of an audit team	CA	0.372	226	0.000	H₀ < 0.05	Rejected
Formal training to each member of an audit team	Student	0.256	146	0.000	H₀ < 0.05	Rejected
Involvement of another senior partner to review the audit strategy of an engagement team	CA	0.370	226	0.000	H₀ < 0.05	Rejected
	Student	0.263	146	0.000	H₀ < 0.05	Rejected
Competence and integrity of the auditor’s expert	CA	0.373	226	0.000	H₀ < 0.05	Rejected
Competence and integrity of the auditor’s expert	Student	0.253	146	0.000	H₀ < 0.05	Rejected
Constant monitoring of the internal quality control policies and their compliance by a professional institute	CA	0.349	226	0.000	H₀ < 0.05	Rejected
	Student	0.250	146	0.000	H₀ < 0.05	Rejected
Lacuna in monitoring competence and ethical requirements of engagement team members	CA	0.348	226	0.000	H₀ < 0.05	Rejected
	Student	0.318	146	0.000	H₀ < 0.05	Rejected
Lesser appointments of the engagement quality control reviewer (EQCR) by Indian firms	CA	0.407	226	0.000	H₀ < 0.05	Rejected
	Student	0.207	146	0.000	H₀ < 0.05	Rejected
Independence of the EQCR	CA	0.409	226	0.000	H₀ < 0.05	Rejected
Independence of the EQCR	Student	0.343	146	0.000	H₀ < 0.05	Rejected
System within the firm for resolving differences of opinion between EQCR and engagement partner	CA	0.391	226	0.000	H₀ < 0.05	Rejected
	Student	0.211	146	0.000	H₀ < 0.05	Rejected
Documentation of engagement quality control review findings	CA	0.383	226	0.000	H₀ < 0.05	Rejected
Documentation of engagement quality control review findings	Student	0.262	146	0.000	H₀ < 0.05	Rejected
Retention of engagement documentation for a sufficient period	CA	0.363	226	0.000	H₀ < 0.05	Rejected
	Student	0.277	146	0.000	H₀ < 0.05	Rejected
Resolving noncompliance by firm members within the quality control framework	CA	0.448	226	0.000	H₀ < 0.05	Rejected
	Student	0.331	146	0.000	H₀ < 0.05	Rejected
Sufficient professional skepticism by statutory auditors	CA	0.406	226	0.000	H₀ < 0.05	Rejected
Sufficient professional skepticism by statutory auditors	Student	0.382	146	0.000	H₀ < 0.05	Rejected
Failure to exercise sufficient professional skepticism in recent accounting frauds	CA	0.370	226	0.000	H₀ < 0.05	Rejected
	Student	0.317	146	0.000	H₀ < 0.05	Rejected
Noncompliance with auditing standard	CA	0.345	226	0.000	H₀ < 0.05	Rejected
Noncompliance with auditing standard	Student	0.302	146	0.000	H₀ < 0.05	Rejected
Sufficiency of auditing standards	CA	0.398	226	0.000	H₀ < 0.05	Rejected
Sufficiency of auditing standards	Student	0.277	146	0.000	H₀ < 0.05	Rejected
Inadequacy in time allotted for conducting substantive audit	CA	0.352	226	0.000	H₀ < 0.05	Rejected
	Student	0.292	146	0.000	H₀ < 0.05	Rejected
Inadequacy in cost incurred for conducting substantive audit	CA	0.394	226	0.000	H₀ < 0.05	Rejected
	Student	0.269	146	0.000	H₀ < 0.05	Rejected
Revision of fee structure for statutory auditors	CA	0.310	226	0.000	H₀ < 0.05	Rejected
Revision of fee structure for statutory auditors	Student	0.285	146	0.000	H₀ < 0.05	Rejected
Reducing maximum audit per period for each statutory auditor	CA	0.233	226	0.000	H₀ < 0.05	Rejected
	Student	0.241	146	0.000	H₀ < 0.05	Rejected
Detailed verification for select companies	CA	0.392	226	0.000	H₀ < 0.05	Rejected
Detailed verification for select companies	Student	0.297	146	0.000	H₀ < 0.05	Rejected
Periodic audit as a measure to reduce audit burden	CA	0.351	226	0.000	H₀ < 0.05	Rejected
Periodic audit as a measure to reduce audit burden	Student	0.277	146	0.000	H₀ < 0.05	Rejected
Restricted access to client’s information	CA	0.337	226	0.000	H₀ < 0.05	Rejected
Restricted access to client’s information	Student	0.336	146	0.000	H₀ < 0.05	Rejected
Acceptance of engagement subject to fulfilment of preconditions	CA	0.383	226	0.000	H₀ < 0.05	Rejected
	Student	0.319	146	0.000	H₀ < 0.05	Rejected
Clarification on difference in the form of the audit report	CA	0.412	226	0.000	H₀ < 0.05	Rejected
Clarification on difference in the form of the audit report	Student	0.300	146	0.000	H₀ < 0.05	Rejected
Mandatory checking of the internal control system by statutory auditors	CA	0.455	226	0.000	H₀ < 0.05	Rejected
	Student	0.260	146	0.000	H₀ < 0.05	Rejected
Statutory auditors’ dependence on the internal auditor	CA	0.393	226	0.000	H₀ < 0.05	Rejected
Statutory auditors’ dependence on the internal auditor	Student	0.267	146	0.000	H₀ < 0.05	Rejected
Excessive reliance placed on internal auditors’ work	CA	0.393	226	0.000	H₀ < 0.05	Rejected
Excessive reliance placed on internal auditors’ work	Student	0.313	146	0.000	H₀ < 0.05	Rejected
Testing the competence and integrity of the internal auditor	CA	0.317	226	0.000	H₀ < 0.05	Rejected
	Student	0.323	146	0.000	H₀ < 0.05	Rejected
Strengthening the audit committee	CA	0.378	226	0.000	H₀ < 0.05	Rejected
Strengthening the audit committee	Student	0.303	146	0.000	H₀ < 0.05	Rejected
Thorough checking of internal auditors’ report on risk of material misstatement	CA	0.356	226	0.000	H₀ < 0.05	Rejected
	Student	0.308	146	0.000	H₀ < 0.05	Rejected
Lack of enforceability of standards governing internal audit operations	CA	0.282	226	0.000	H₀ < 0.05	Rejected
	Student	0.235	146	0.000	H₀ < 0.05	Rejected
Involvement of all members of the engagement team in the planning process	CA	0.405	226	0.000	H₀ < 0.05	Rejected
	Student	0.301	146	0.000	H₀ < 0.05	Rejected
Possession of necessary competence and independence for formulating an effective plan	CA	0.452	226	0.000	H₀ < 0.05	Rejected
	Student	0.347	146	0.000	H₀ < 0.05	Rejected
Investigation into client’s ethical orientation for updating of plan	CA	0.399	226	0.000	H₀ < 0.05	Rejected
	Student	0.402	146	0.000	H₀ < 0.05	Rejected
Allotment of more resources in high-risk areas	CA	0.390	226	0.000	H₀ < 0.05	Rejected
Allotment of more resources in high-risk areas	Student	0.294	146	0.000	H₀ < 0.05	Rejected
Assessment of nature, time and scope of audit before formulating plans	CA	0.476	226	0.000	H₀ < 0.05	Rejected
	Student	0.294	146	0.000	H₀ < 0.05	Rejected
Maintaining documentation of audit strategy, audit programme, and audit completion	CA	0.448	226	0.000	H₀ < 0.05	Rejected
	Student	0.310	146	0.000	H₀ < 0.05	Rejected
Involvement of another partner of the firm to review audit strategy	CA	0.401	226	0.000	H₀ < 0.05	Rejected
	Student	0.280	146	0.000	H₀ < 0.05	Rejected
Limitations of persuasive audit evidence	CA	0.444	226	0.000	H₀ < 0.05	Rejected
Limitations of persuasive audit evidence	Student	0.312	146	0.000	H₀ < 0.05	Rejected
Proper design of the audit procedure for collecting sufficient appropriate audit evidence	CA	0.488	226	0.000	H₀ < 0.05	Rejected
	Student	0.303	146	0.000	H₀ < 0.05	Rejected
Verification of assets as a basis of their existence	CA	0.426	226	0.000	H₀ < 0.05	Rejected
Verification of assets as a basis of their existence	Student	0.287	146	0.000	H₀ < 0.05	Rejected
Verification of the internal control system through direct observation of control	CA	0.425	226	0.000	H₀ < 0.05	Rejected
	Student	0.327	146	0.000	H₀ < 0.05	Rejected
Reliability of formal written enquiries	CA	0.374	226	0.000	H₀ < 0.05	Rejected
Reliability of formal written enquiries	Student	0.331	146	0.000	H₀ < 0.05	Rejected
Nonreliability of confirmation received from external parties	CA	0.303	226	0.000	H₀ < 0.05	Rejected
	Student	0.347	146	0.000	H₀ < 0.05	Rejected
Excessive reliance on the management’s expert	CA	0.424	226	0.000	H₀ < 0.05	Rejected
Excessive reliance on the management’s expert	Student	0.373	146	0.000	H₀ < 0.05	Rejected
Inclusion of an expert in the engagement team to evaluate the reports of the management expert	CA	0.391	226	0.000	H₀ < 0.05	Rejected
	Student	0.350	146	0.000	H₀ < 0.05	Rejected
Collection of evidence on the competence and integrity of the management expert	CA	0.441	226	0.000	H₀ < 0.05	Rejected
	Student	0.296	146	0.000	H₀ < 0.05	Rejected
Reliance on management’s system of physical verification	CA	0.358	226	0.000	H₀ < 0.05	Rejected
Reliance on management’s system of physical verification	Student	0.300	146	0.000	H₀ < 0.05	Rejected
Physical inspection of stock and asset positions	CA	0.459	226	0.000	H₀ < 0.05	Rejected
Physical inspection of stock and asset positions	Student	0.318	146	0.000	H₀ < 0.05	Rejected
Surprise inspection into stock and asset position	CA	0.403	226	0.000	H₀ < 0.05	Rejected
Surprise inspection into stock and asset position	Student	0.265	146	0.000	H₀ < 0.05	Rejected
Application of more a stringent procedure to receive confirmation from a third party, when the client and third party have conflicts of interest	CA	0.410	226	0.000	H₀ < 0.05	Rejected
	Student	0.270	146	0.000	H₀ < 0.05	Rejected
Sampling in the audit procedure	CA	0.336	226	0.000	H₀ < 0.05	Rejected
Sampling in the audit procedure	Student	0.279	146	0.000	H₀ < 0.05	Rejected
Constant change in the nature, timing and scope of the audit procedure to gather reliable samples	CA	0.429	226	0.000	H₀ < 0.05	Rejected
	Student	0.320	146	0.000	H₀ < 0.05	Rejected
Acquiring adequate knowledge in statistical application to design appropriate sample	CA	0.451	226	0.000	H₀ < 0.05	Rejected
	Student	0.333	146	0.000	H₀ < 0.05	Rejected
Selection of large audit sample subject to risk tolerance of statutory auditors	CA	0.446	226	0.000	H₀ < 0.05	Rejected
	Student	0.343	146	0.000	H₀ < 0.05	Rejected
Scientific designing of confirmation requests	CA	0.454	226	0.000	H₀ < 0.05	Rejected
Scientific designing of confirmation requests	Student	0.281	146	0.000	H₀ < 0.05	Rejected
Applying an alternative method for obtaining confirmation if the parties are in legal dispute	CA	0.438	226	0.000	H₀ < 0.05	Rejected
	Student	0.342	146	0.000	H₀ < 0.05	Rejected
Necessity of confirmation for accounts receivable and accounts payable balance only	CA	0.433	226	0.000	H₀ < 0.05	Rejected
	Student	0.302	146	0.000	H₀ < 0.05	Rejected
Statutory auditor’s responsibility even if he is relying on the work of the auditor’s expert	CA	0.456	226	0.000	H₀ < 0.05	Rejected
	Student	0.352	146	0.000	H₀ < 0.05	Rejected
Evaluation of the competence and independence of auditor’s expert	CA	0.433	226	0.000	H₀ < 0.05	Rejected
	Student	0.308	146	0.000	H₀ < 0.05	Rejected
Problem of accounting estimates in drawing conclusive evidence about the financial statement	CA	0.319	226	0.000	H₀ < 0.05	Rejected
	Student	0.285	146	0.000	H₀ < 0.05	Rejected
Difficulty in identifying management bias using accounting estimates	CA	0.440	226	0.000	H₀ < 0.05	Rejected
	Student	0.350	146	0.000	H₀ < 0.05	Rejected
Enquiry into management’s justification behind using certain accounting estimates	CA	0.480	226	0.000	H₀ < 0.05	Rejected
	Student	0.326	146	0.000	H₀ < 0.05	Rejected
Nonreliance on the expert’s certificate on accounting estimates	CA	0.382	226	0.000	H₀ < 0.05	Rejected
	Student	0.314	146	0.000	H₀ < 0.05	Rejected
Necessity of audit documents to address further queries	CA	0.458	226	0.000	H₀ < 0.05	Rejected
Necessity of audit documents to address further queries	Student	0.346	146	0.000	H₀ < 0.05	Rejected
Proper documentation of the regulatory requirements of the audit procedure	CA	0.497	226	0.000	H₀ < 0.05	Rejected
	Student	0.274	146	0.000	H₀ < 0.05	Rejected
Documentation of professional skepticism by statutory auditors	CA	0.419	226	0.000	H₀ < 0.05	Rejected
	Student	0.312	146	0.000	H₀ < 0.05	Rejected
Documentation of the basis for the auditor’s conclusions	CA	0.382	226	0.000	H₀ < 0.05	Rejected
Documentation of the basis for the auditor’s conclusions	Student	0.310	146	0.000	H₀ < 0.05	Rejected
Documentation of additional procedures undertaken by statutory auditors	CA	0.405	226	0.000	H₀ < 0.05	Rejected
	Student	0.306	146	0.000	H₀ < 0.05	Rejected
Incorporating compliance with appropriate SA in the audit report	CA	0.379	226	0.000	H₀ < 0.05	Rejected
	Student	0.358	146	0.000	H₀ < 0.05	Rejected
Disclosure of noncompliance with a particular SA in the audit report	CA	0.404	226	0.000	H₀ < 0.05	Rejected
	Student	0.312	146	0.000	H₀ < 0.05	Rejected
Incorporating the future viability of the company operation in the audit report	CA	0.253	226	0.000	H₀ < 0.05	Rejected
	Student	0.259	146	0.000	H₀ < 0.05	Rejected
Inability of the auditor to check compliance with all regulations in financial statements	CA	0.397	226	0.000	H₀ < 0.05	Rejected
	Student	0.348	146	0.000	H₀ < 0.05	Rejected
Management’s influence in the appointment of statutory auditors	CA	0.343	226	0.000	H₀ < 0.05	Rejected
	Student	0.304	146	0.000	H₀ < 0.05	Rejected
Appointment by an independent regulatory authority	CA	0.332	226	0.000	H₀ < 0.05	Rejected
Appointment by an independent regulatory authority	Student	0.299	146	0.000	H₀ < 0.05	Rejected
Necessity of whistle blowers for identifying red flags	CA	0.423	226	0.000	H₀ < 0.05	Rejected
Necessity of whistle blowers for identifying red flags	Student	0.262	146	0.000	H₀ < 0.05	Rejected
Proper enforcement of Whistle Blower Policy in Clause 49 of the listing agreement mandated by the SEBI	CA	0.401	226	0.000	H₀ < 0.05	Rejected
	Student	0.238	146	0.000	H₀ < 0.05	Rejected
Effectiveness of continuous learning programmes (CLPs) of ICAI	CA	0.371	226	0.000	H₀ < 0.05	Rejected
	Student	0.269	146	0.000	H₀ < 0.05	Rejected
Periodical evaluation of outcome of CLPs	CA	0.404	226	0.000	H₀ < 0.05	Rejected
Periodical evaluation of outcome of CLPs	Student	0.313	146	0.000	H₀ < 0.05	Rejected
Failure of the current auditing system to detect systematically designed accounting frauds	CA	0.353	226	0.000	H₀ < 0.05	Rejected
	Student	0.302	146	0.000	H₀ < 0.05	Rejected
Impact of the consulting service on audit quality	CA	0.246	226	0.000	H₀ < 0.05	Rejected
Impact of the consulting service on audit quality	Student	0.270	146	0.000	H₀ < 0.05	Rejected
Complete diversification of accounting firms providing audit and consultancy services	CA	0.282	226	0.000	H₀ < 0.05	Rejected
	Student	0.289	146	0.000	H₀ < 0.05	Rejected
Consideration of propriety of the transaction under the purview of financial audit	CA	0.404	226	0.000	H₀ < 0.05	Rejected
	Student	0.333	146	0.000	H₀ < 0.05	Rejected
Effectiveness of peer review of audit work	CA	0.275	226	0.000	H₀ < 0.05	Rejected
Effectiveness of peer review of audit work	Student	0.237	146	0.000	H₀ < 0.05	Rejected
Cut-throat competition in the accounting profession	CA	0.331	226	0.000	H₀ < 0.05	Rejected
Cut-throat competition in the accounting profession	Student	0.258	146	0.000	H₀ < 0.05	Rejected
Reward for excellent quality control policies	CA	0.315	226	0.000	H₀ < 0.05	Rejected
Reward for excellent quality control policies	Student	0.363	146	0.000	H₀ < 0.05	Rejected
Satisfactory quality control of a statutory audit	CA	0.280	226	0.000	H₀ < 0.05	Rejected
Satisfactory quality control of a statutory audit	Student	0.241	146	0.000	H₀ < 0.05	Rejected

Source: Compilation of Field Survey Data using SPSS 20.

Book Chapters

Prelims

Chapter 1 Introduction

Chapter 2 Quality of Statutory Audit of Financial Statements: A Conceptual Discussion

Chapter 3 Quality Control Framework for Statutory Audit of Financial Statements in Select Countries: A Conceptual Review

Chapter 4 Quality Control Framework for Statutory Audit in Select Countries: A Comparative Study

Chapter 5 Respondents’ Perception on Quality Control Procedure for Statutory Financial Audit: An Empirical Study

Chapter 6 Concluding Observations and Suggestions

Appendices

Appendix A: Select Relevant Table for Chapter 5

Appendix B: Questionnaire for Primary Data

Bibliography

About the Authors

Index