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Characteristics of Organisations Using an Audit for Interim Financial Statements
Author(s) -
BAINES ANNETTE,
TANEWSKI GEORGE,
GAY GRANT
Publication year - 2000
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2000.tb00070.x
Subject(s) - accounting , audit , interim , business , leverage (statistics) , stock exchange , profitability index , audit committee , joint audit , audit evidence , external auditor , internal audit , finance , archaeology , machine learning , computer science , history
This study examines the characteristics of companies that choose to have a full audit of their interim financial statements, as distinct from a review. A cross‐section of 252 firms that had submitted interim financial reports to the Australian Stock Exchange were selected from the Business Review Weekly (BRW) list of top 1,000 companies. A direct logistic regression analysis was undertaken to assess whether voluntarily adopting an audit was related to size (assets), leverage, minority interest, profitability, industry, and whether the company had used a Big‐6 audit firm. The results indicate that the level of leverage is a significant predictor of companies adopting a review, whereas use of a Big‐6 audit firm was associated with conducting an audit. In addition, there is some evidence companies in the financial services industry were positively associated with conducting an audit.