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The cost of auditing service performance information

Tracks
Jade 1
Tuesday, July 2, 2024
11:00 AM - 11:25 AM

Presenter

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Prof Tom Scott
Professor
Auckland University Of Technology

The cost of auditing service performance information

Abstract

This paper adds to prior literature by examining the impact on audit effort from requiring the assurance of non-financial information. Specifically, we use a sample of large New Zealand not-for-profits (charities) newly required to report and have assured statements of service performance following accounting and auditing standards. We find an increase in audit fees of 14.5%, although there is no change in audit or filing lag. There is no difference based on auditing standard used, audit firm or whether an ‘other matter’ is expressed in the audit report. Overall, our results suggesting mandating the reporting and assurance of non-financial information should be viewed as having greater costs than adopting International Financial Reporting Standards.

Biography

Tom Scott is a Professor of Accounting at the Auckland University of Technology. He teaches courses focused on financial accounting and auditing standards, with a particular focus on understanding the effect of accounting choice on business information. His research focuses on examining the intended and unintended consequences of changes in accounting and auditing rules and the usefulness of accounting information. He has published in several academic journals such as Accounting and Finance, Auditing, Australian Journal of Management, International Journal of Auditing, Journal of Contemporary Accounting & Economics, among others, and his research has received best paper awards, local media attention, and been presented at IASB/AASB research forums. Tom serves as an Editor-in-Chief for Pacific Accounting Review, and is on the editorial board of the Australian Accounting Review and International Journal of Auditing , and the organizing committee of QARNs which aims to develop early career researchers and facilitate quantitative accounting research in New Zealand and beyond. Tom also serves on the External Reporting Board Advisory Panel and the Australian Accounting Standards Academic Advisory Panel. He is also an AFAANZ Fellow.

Chair

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David Hay
Professor Of Auditing
University of Auckland


Discussant

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ROMALANI LEOFO
Asociate Lecturer
The Australian National University

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