Materiality in accounting and auditing in the UK

2.50
Hdl Handle:
http://hdl.handle.net/10547/338928
Title:
Materiality in accounting and auditing in the UK
Authors:
Chong, Hock Gin
Abstract:
The Statement of Auditing Standards 220 (Materiality and the audit, 1995) requires auditors to assess both the quantitative and qualitative aspects of materiality. However, the SAS has not specified the quantitative measurement of materiality. This research assesses the need in the UK for having a specific mathematical guideline in addition to the qualitative aspect of materiality. It evaluates the outcomes of legal cases in both the UK and the US, looks at the accounting statements issued by accounting bodies in other countries on materiality, and responses to the then exposure draft of the SAS 220. Questionnaires were sent in the UK to 1000 auditors (25.6% responded) and 1000 non auditors (26.4% responded), and telephone surveys followed with non respondents and selected individuals. The case studies contained in the questionnaires are materiality impact on losses on discontinuation of a production line, changes in accounting policies, contingent liabilities, and cash defaulcation. Results showed that there are inconsistencies in legal decisions on materiality. Countries having materiality guidelines adopted 10% net profit before tax as the norm. The 10% of net profit before tax is the favourite guideline for materiality from questionnaire respondents and telephone interviewees. Consistency in the results suggest the need for having a standard mathematical measurement of materiality in the UK.
Citation:
Chong, H.G. (1998) 'Materiality in accounting and auditing in the UK'. PhD thesis. Sheffield University.
Publisher:
University of Bedfordshire
Issue Date:
Jun-1998
URI:
http://hdl.handle.net/10547/338928
Type:
Thesis or dissertation
Language:
en
Description:
A thesis submitted in part fulfilment of the requirements of Sheffield University for the degree of Doctor of Philosophy
Appears in Collections:
PhD e-theses

Full metadata record

DC FieldValue Language
dc.contributor.authorChong, Hock Ginen
dc.date.accessioned2015-01-27T14:03:20Z-
dc.date.available2015-01-27T14:03:20Z-
dc.date.issued1998-06-
dc.identifier.citationChong, H.G. (1998) 'Materiality in accounting and auditing in the UK'. PhD thesis. Sheffield University.en
dc.identifier.urihttp://hdl.handle.net/10547/338928-
dc.descriptionA thesis submitted in part fulfilment of the requirements of Sheffield University for the degree of Doctor of Philosophyen
dc.description.abstractThe Statement of Auditing Standards 220 (Materiality and the audit, 1995) requires auditors to assess both the quantitative and qualitative aspects of materiality. However, the SAS has not specified the quantitative measurement of materiality. This research assesses the need in the UK for having a specific mathematical guideline in addition to the qualitative aspect of materiality. It evaluates the outcomes of legal cases in both the UK and the US, looks at the accounting statements issued by accounting bodies in other countries on materiality, and responses to the then exposure draft of the SAS 220. Questionnaires were sent in the UK to 1000 auditors (25.6% responded) and 1000 non auditors (26.4% responded), and telephone surveys followed with non respondents and selected individuals. The case studies contained in the questionnaires are materiality impact on losses on discontinuation of a production line, changes in accounting policies, contingent liabilities, and cash defaulcation. Results showed that there are inconsistencies in legal decisions on materiality. Countries having materiality guidelines adopted 10% net profit before tax as the norm. The 10% of net profit before tax is the favourite guideline for materiality from questionnaire respondents and telephone interviewees. Consistency in the results suggest the need for having a standard mathematical measurement of materiality in the UK.en
dc.language.isoenen
dc.publisherUniversity of Bedfordshireen
dc.subjectN400 Accountingen
dc.subjectmaterialityen
dc.subjectaccountingen
dc.subjectauditingen
dc.titleMateriality in accounting and auditing in the UKen
dc.typeThesis or dissertationen
dc.type.qualificationnamePhDen_GB
dc.type.qualificationlevelPhDen
dc.publisher.institutionUniversity of Bedfordshireen
This item is licensed under a Creative Commons License
Creative Commons
All Items in UOBREP are protected by copyright, with all rights reserved, unless otherwise indicated.