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

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, Bingley, 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
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
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
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
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
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
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
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
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
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
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
Student 0.302 146 0.000 H0 < 0.05 Rejected
Sufficiency of auditing standards CA 0.398 226 0.000 H0 < 0.05 Rejected
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Student 0.241 146 0.000 H0 < 0.05 Rejected

Source: Compilation of Field Survey Data using SPSS 20.

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
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
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
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
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
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
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
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
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
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
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
Student 0.302 146 0.000 H0 < 0.05 Rejected
Sufficiency of auditing standards CA 0.398 226 0.000 H0 < 0.05 Rejected
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Student 0.241 146 0.000 H0 < 0.05 Rejected

Source: Compilation of Field Survey Data using SPSS 20.