2016B04 - The auditor’s evaluation of misstatements – Exploration, drivers, and consequences (Prof. dr. Vanstraelen)

What?

Improve understanding and potential improvement recommendations about the process and the consequences of evaluating misstatements – when and why does the auditor waive or require adjustment? Focus is on the drivers in the process (not on evaluation of the misstatements itself). What is the type, nature, direction, magnitude, and recurrence of detected and adjusted misstatements? To what extent are such adjustments effective in improving actual financial reporting quality (i.e., the value of auditing)?

Why?

Auditors detect misstatements during the audit process for which the auditor (through a (social) negotiation process with management), either requires or waives an adjustment. Because this decision will directly influence the financial reporting quality, it is important for firms to know how to positively influence the effectiveness of the negotiation process over audit findings.

Knowledge dissemination:

Masterclass report: Direct auditor impact on audit findings - FAR Masterclass on ‘Identification and negotiation of audit findings’

Masterclass report (Dutch version): Direct auditor impact on audit findings - FAR Masterclass on ‘Identification and negotiation of audit findings’