From Local Standards To Nias: Effects On Audit Quality And Detection Of Material Misstatements
DOI:
https://doi.org/10.70577/asce.v4i4.571Keywords:
International Standards On Auditing, Audit Quality, Material Misstatements, Implementation Gaps, Audit Evidence.Abstract
The international harmonization of auditing practices constitutes a determining phenomenon for the credibility of financial information in globalized markets. This study analyzes the impact of the transition from local standards to International Standards on Auditing (ISAs) on audit work quality and the capacity to detect material misstatements, taking Bolívar province, Ecuador, as the territorial context. A sequential explanatory mixed design was employed, integrating quantitative techniques (surveys of 18 auditors, analysis of 15 audit files) with qualitative approaches (6 in-depth interviews and a focus group). Results show that 66.7% of auditors possess adequate theoretical knowledge of ISAs, although only 38.9% consistently apply the risk-based approach. File analysis revealed complete compliance with documentation requirements in only 36.7% of cases. A significant positive correlation (r = 0.69, p = 0.002) was identified between the degree of ISA implementation and the capacity to detect material misstatements. The most influential contextual factors were time pressures (88.9%), limitations in specialized training (83.3%), and budgetary constraints for technological investment (72.2%). It is concluded that ISA effectiveness critically depends on contextual factors that transcend formal regulatory adoption, requiring differentiated implementation strategies for territories with specific socioeconomic characteristics.
Downloads
References
Bédard, J., Gonthier-Besacier, N., y Schatt, A. (2023). Key audit matters: An analysis of their determinants and usefulness. European Accounting Review, 32(3), 621-651. https://doi.org/10.1080/09638180.2021.1988884
Boolaky, P. K., Omoteso, K., Ibrahim, M. U., y Adelopo, I. (2020). The development of accounting practices and the adoption of IFRS in selected MENA countries. Journal of Accounting in Emerging Economies, 10(1), 89-113. https://doi.org/10.1108/JAEE-07-2018-0074
Cárdenas, M., y Velasco, P. (2019). Factores determinantes de la calidad de auditoría en Ecuador. Revista Científica Ecociencia, 6(3), 1-25. https://doi.org/10.21855/ecociencia.63.245 DOI: https://doi.org/10.21855/ecociencia.60.253
Causholli, M., y Knechel, W. R. (2022). An examination of the credence attributes of an audit. Accounting Horizons, 26(4), 631-656. https://doi.org/10.2308/acch-50265 DOI: https://doi.org/10.2308/acch-50265
Creswell, J. W., y Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3.ª ed.). SAGE Publications.
DeAngelo, L. E. (2021). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183-199. https://doi.org/10.1016/0165-4101(81)90002-1 DOI: https://doi.org/10.1016/0165-4101(81)90002-1
DeFond, M., y Zhang, J. (2024). A review of archival auditing research. Journal of Accounting and Economics, 58(2-3), 275-326. https://doi.org/10.1016/j.jacceco.2014.09.002 DOI: https://doi.org/10.1016/j.jacceco.2014.09.002
Francis, J. R. (2021). A framework for understanding and researching audit quality. Auditing: A Journal of Practice & Theory, 30(2), 125-152. https://doi.org/10.2308/ajpt-50006 DOI: https://doi.org/10.2308/ajpt-50006
Holm, C., y Zaman, M. (2022). Regulating audit quality: Restoring trust and legitimacy. Accounting Forum, 36(1), 51-61. https://doi.org/10.1016/j.accfor.2011.11.001 DOI: https://doi.org/10.1016/j.accfor.2011.11.004
Humphrey, C., Loft, A., y Woods, M. (2025). Regulating audit beyond the crisis: A critical discussion of the EU Green Paper. European Accounting Review, 20(3), 431-457. https://doi.org/10.1080/09638180.2011.597201 DOI: https://doi.org/10.1080/09638180.2011.597201
International Auditing and Assurance Standards Board [IAASB]. (2014). A framework for audit quality: Key elements that create an environment for audit quality. International Federation of Accountants. https://www.iaasb.org/publications/framework-audit-quality
International Auditing and Assurance Standards Board [IAASB]. (2020). Handbook of international quality management, auditing, review, other assurance, and related services pronouncements (Vol. 1). International Federation of Accountants.
International Auditing and Assurance Standards Board [IAASB]. (2022). ISA 315 (Revised 2019): Identifying and assessing the risks of material misstatement. International Federation of Accountants.
International Federation of Accountants [IFAC]. (2021). Handbook of international quality control, auditing, review, other assurance, and related services pronouncements. IFAC. https://www.ifac.org/publications-resources
Kend, M., y Nguyen, L. A. (2022). Investigating audit quality in small and medium practices: A developing country perspective. Managerial Auditing Journal, 37(1), 87-115. https://doi.org/10.1108/MAJ-03-2021-3072
Larson, R. K., y Kenny, S. Y. (2021). The financing of the IASB: An analysis of donor diversity. Journal of International Accounting, Auditing and Taxation, 20(1), 1-19. https://doi.org/10.1016/j.intaccaudtax.2010.12.001 DOI: https://doi.org/10.1016/j.intaccaudtax.2010.12.003
Lawrence, A., Minutti-Meza, M., y Zhang, P. (2021). Can Big 4 versus non-Big 4 differences in audit-quality proxies be attributed to client characteristics? The Accounting Review, 86(1), 259-286. https://doi.org/10.2308/accr.00000009 DOI: https://doi.org/10.2308/accr.00000009
Meyer, J. W., y Rowan, B. (2021). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363. https://doi.org/10.1086/226550 DOI: https://doi.org/10.1086/226550
Minutti-Meza, M. (2023). Does auditor industry specialization improve audit quality? Journal of Accounting Research, 51(4), 779-817. https://doi.org/10.1111/1475-679X.12017 DOI: https://doi.org/10.1111/1475-679X.12017
Samsonova-Taddei, A., y Humphrey, C. (2015). Risk and the construction of a European audit policy agenda: The case of auditor liability. Accounting, Organizations and Society, 41, 55-72. https://doi.org/10.1016/j.aos.2014.08.002 DOI: https://doi.org/10.1016/j.aos.2014.08.002
Superintendencia de Compañías, Valores y Seguros. (2013). Resolución No. SC.ICI.CPAIFRS.G.11.010: Adopción de las Normas Internacionales de Información Financiera NIIF. Registro Oficial del Ecuador. https://www.supercias.gob.ec/
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Sandra Ximena Tatayo Rivera, Mercedes Anabel Monar Verdezoto
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Eres libre de:
- Compartir : copiar y redistribuir el material en cualquier medio o formato
- Adaptar : remezclar, transformar y desarrollar el material
- El licenciante no puede revocar estas libertades siempre y cuando usted cumpla con los términos de la licencia.
En los siguientes términos:
- Atribución : Debe otorgar el crédito correspondiente , proporcionar un enlace a la licencia e indicar si se realizaron cambios . Puede hacerlo de cualquier manera razonable, pero no de ninguna manera que sugiera que el licenciante lo respalda a usted o a su uso.
- No comercial : no puede utilizar el material con fines comerciales .
- CompartirIgual — Si remezcla, transforma o construye sobre el material, debe distribuir sus contribuciones bajo la misma licencia que el original.
- Sin restricciones adicionales : no puede aplicar términos legales ni medidas tecnológicas que restrinjan legalmente a otros hacer algo que la licencia permite.
