Audit materiality and environmental matters in financial reports: some interview evidence

Date
2008
Authors
Chiang, CKH
Northcott, D
Supervisor
Item type
Conference Contribution
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
AUT University
Abstract

This paper reports interview evidence on audit materiality and environmental matters in financial reports. The findings were based on interviews with twenty-seven senior financial audit practitioners in New Zealand. Significant findings from the research interviews are (1) the auditors’ interpretation and perception of the materiality assessment would fundamentally preclude them from even considering environmental matters in their audits, (2) a legislative mandate may be needed to bring about the same awareness in and focus on environmental matters in financial auditors, as is presently evident in public sector auditors; (3) there is evidence of an ‘expectations gap type II’ – i.e. a gap between the expectations of standards setters and practicing auditors (Specht & Waldon, 1992). However further research is required to investigate the cause(s) for the ‘expectations gap type II’ and what might be done to bridge this gap.

Description
Keywords
Financial audits , Audit materiality , Environmental matters, Auditing profession
Source
20th Asian-Pacific Conference on International Accounting Issues, Paris, 2008-11-09 - 2008-11-12
DOI
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NOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication.