An empirical analysis of auditors' evidence gathering techniques in Bahrain

Prem Lal Joshi, Ashutosh Deshmukh

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study investigates auditors' perceptions regarding audit evidence gathering techniques in the following areas: extent of use, reliability, average time spent and persuasiveness of the collected evidence. Additionally, the problems encountered by the auditors in using these techniques in the field are also catalogued. This study used a survey method and collected information from the Big 4 and non-Big 4 firms in Bahrain. The results indicate that the auditors primarily use documentation, analytical procedures and confirmations in collecting evidence. The auditors rank confirmation, physical and documentary evidence as the most reliable forms of evidence. The auditors also spend most of their time on these techniques. However, the sufficiency and competency of the audit evidence is rated as merely satisfactory. The Bahrain business environment is conservative and secretive, which affects the audit process and partly explains our results. The common problems faced by both the Big 4 and non-Big 4 firms are difficulties in collecting external evidence and uncooperative clients. The study also analyses the differences in the perceptions of the Big 4 and non-Big 4 auditors and experienced versus non-experienced auditors. The results of this study shed light on the problems and perception of the auditors in the non-Western countries in using standard evidence collection techniques.

Original languageEnglish (US)
Pages (from-to)333-352
Number of pages20
JournalAfro-Asian Journal of Finance and Accounting
Volume1
Issue number4
DOIs
StatePublished - Oct 1 2009

Fingerprint

Empirical analysis
Bahrain
Auditors
Big 4
Audit evidence
Sufficiency
Audit process
Analytical procedures
Documentation
Business environment
Competency

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance

Cite this

@article{4e4beee0d02148539225ffab621533e6,
title = "An empirical analysis of auditors' evidence gathering techniques in Bahrain",
abstract = "This study investigates auditors' perceptions regarding audit evidence gathering techniques in the following areas: extent of use, reliability, average time spent and persuasiveness of the collected evidence. Additionally, the problems encountered by the auditors in using these techniques in the field are also catalogued. This study used a survey method and collected information from the Big 4 and non-Big 4 firms in Bahrain. The results indicate that the auditors primarily use documentation, analytical procedures and confirmations in collecting evidence. The auditors rank confirmation, physical and documentary evidence as the most reliable forms of evidence. The auditors also spend most of their time on these techniques. However, the sufficiency and competency of the audit evidence is rated as merely satisfactory. The Bahrain business environment is conservative and secretive, which affects the audit process and partly explains our results. The common problems faced by both the Big 4 and non-Big 4 firms are difficulties in collecting external evidence and uncooperative clients. The study also analyses the differences in the perceptions of the Big 4 and non-Big 4 auditors and experienced versus non-experienced auditors. The results of this study shed light on the problems and perception of the auditors in the non-Western countries in using standard evidence collection techniques.",
author = "Joshi, {Prem Lal} and Ashutosh Deshmukh",
year = "2009",
month = "10",
day = "1",
doi = "10.1504/AAJFA.2009.028913",
language = "English (US)",
volume = "1",
pages = "333--352",
journal = "Afro-Asian Journal of Finance and Accounting",
issn = "1751-6447",
publisher = "Inderscience Enterprises Ltd",
number = "4",

}

An empirical analysis of auditors' evidence gathering techniques in Bahrain. / Joshi, Prem Lal; Deshmukh, Ashutosh.

In: Afro-Asian Journal of Finance and Accounting, Vol. 1, No. 4, 01.10.2009, p. 333-352.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An empirical analysis of auditors' evidence gathering techniques in Bahrain

AU - Joshi, Prem Lal

AU - Deshmukh, Ashutosh

PY - 2009/10/1

Y1 - 2009/10/1

N2 - This study investigates auditors' perceptions regarding audit evidence gathering techniques in the following areas: extent of use, reliability, average time spent and persuasiveness of the collected evidence. Additionally, the problems encountered by the auditors in using these techniques in the field are also catalogued. This study used a survey method and collected information from the Big 4 and non-Big 4 firms in Bahrain. The results indicate that the auditors primarily use documentation, analytical procedures and confirmations in collecting evidence. The auditors rank confirmation, physical and documentary evidence as the most reliable forms of evidence. The auditors also spend most of their time on these techniques. However, the sufficiency and competency of the audit evidence is rated as merely satisfactory. The Bahrain business environment is conservative and secretive, which affects the audit process and partly explains our results. The common problems faced by both the Big 4 and non-Big 4 firms are difficulties in collecting external evidence and uncooperative clients. The study also analyses the differences in the perceptions of the Big 4 and non-Big 4 auditors and experienced versus non-experienced auditors. The results of this study shed light on the problems and perception of the auditors in the non-Western countries in using standard evidence collection techniques.

AB - This study investigates auditors' perceptions regarding audit evidence gathering techniques in the following areas: extent of use, reliability, average time spent and persuasiveness of the collected evidence. Additionally, the problems encountered by the auditors in using these techniques in the field are also catalogued. This study used a survey method and collected information from the Big 4 and non-Big 4 firms in Bahrain. The results indicate that the auditors primarily use documentation, analytical procedures and confirmations in collecting evidence. The auditors rank confirmation, physical and documentary evidence as the most reliable forms of evidence. The auditors also spend most of their time on these techniques. However, the sufficiency and competency of the audit evidence is rated as merely satisfactory. The Bahrain business environment is conservative and secretive, which affects the audit process and partly explains our results. The common problems faced by both the Big 4 and non-Big 4 firms are difficulties in collecting external evidence and uncooperative clients. The study also analyses the differences in the perceptions of the Big 4 and non-Big 4 auditors and experienced versus non-experienced auditors. The results of this study shed light on the problems and perception of the auditors in the non-Western countries in using standard evidence collection techniques.

UR - http://www.scopus.com/inward/record.url?scp=70350068072&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=70350068072&partnerID=8YFLogxK

U2 - 10.1504/AAJFA.2009.028913

DO - 10.1504/AAJFA.2009.028913

M3 - Article

AN - SCOPUS:70350068072

VL - 1

SP - 333

EP - 352

JO - Afro-Asian Journal of Finance and Accounting

JF - Afro-Asian Journal of Finance and Accounting

SN - 1751-6447

IS - 4

ER -