Assessment of the Significance Threshold in Auditing Financial Statements

Abstract:     
This paper is aimed at providing specialists with a practical method of assessing the significance threshold when auditing financial statements, as well as of determining the analyzed sample.

The novelty of this study resides in the information-based modeling of the section Audit approach of the Current audit file together with the determination of the sample size depending on the risk margin corresponding to each category of patrimonial assets. Thus, we reckon that the subjectivity of financial auditors is significantly reduced. Hence, we shall present to you a brief description of the section F - Audit Approach, and a presentation of the possibility to automatize this section by means of the software FARisk.

Number of Pages in PDF File: 14

Keywords: audit, significance threshold, information-based modeling, FARisk

JEL Classification: M49

Accepted Paper Series