Audit Exemption For Small And Medium Enterprises: Perceptions Of Malaysian Auditors
The objective of the study is to examine audit frm size, the provision of non-audit services (NAS) and audit tenure as factors that influence the likelihood that an auditor agrees with allowing audit exemption. This study employs a 2 × 2 × 2 within-subject experimental design. Respondent auditors...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2016
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| Subjects: | |
| Online Access: | http://eprints.usm.my/36678/ http://eprints.usm.my/36678/1/aamj21022016_7.pdf |
| _version_ | 1848877978132414464 |
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| author | Haron, Hasnah Ismail, Ishak Ganesan, Yuvaraj Hamzah, Zulhawati |
| author_facet | Haron, Hasnah Ismail, Ishak Ganesan, Yuvaraj Hamzah, Zulhawati |
| author_sort | Haron, Hasnah |
| building | USM Institutional Repository |
| collection | Online Access |
| description | The objective of the study is to examine audit frm size, the provision of non-audit services
(NAS) and audit tenure as factors that influence the likelihood that an auditor agrees with
allowing audit exemption. This study employs a 2 × 2 × 2 within-subject experimental
design. Respondent auditors were required to evaluate 8 case scenarios. A total of 79
questionnaires were returned and used for data analysis. General Linear Measurement
(Repeat Measure) was used to analyse the data. The study found that an audit frm size has
a signifcant impact on the likelihood that an auditor agrees with offering audit exemption.
The larger the size of the frm, the greater is the likelihood of agreeing with allowing audit
exemption. Therefore, it is suggested that small audit frms (with 5 or fewer employees)
merge and focus on activities that contribute more added value such as consultancy. In
so doing, auditors from these frms would be required to improve their knowledge and
capacity by offering these services and not merely focusing on traditional audit work
for SMEs. This is because SMEs are known to have limited resources and capacity and thus
would be expected to have poor internal control. The requirement of a mandatory audit for
such frms might lead auditors to compromise their independence. Thus, the government |
| first_indexed | 2025-11-15T17:24:01Z |
| format | Article |
| id | usm-36678 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:24:01Z |
| publishDate | 2016 |
| publisher | Asian Academy of Management (AAM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-366782017-09-20T01:42:18Z http://eprints.usm.my/36678/ Audit Exemption For Small And Medium Enterprises: Perceptions Of Malaysian Auditors Haron, Hasnah Ismail, Ishak Ganesan, Yuvaraj Hamzah, Zulhawati HD28-70 Management. Industrial Management The objective of the study is to examine audit frm size, the provision of non-audit services (NAS) and audit tenure as factors that influence the likelihood that an auditor agrees with allowing audit exemption. This study employs a 2 × 2 × 2 within-subject experimental design. Respondent auditors were required to evaluate 8 case scenarios. A total of 79 questionnaires were returned and used for data analysis. General Linear Measurement (Repeat Measure) was used to analyse the data. The study found that an audit frm size has a signifcant impact on the likelihood that an auditor agrees with offering audit exemption. The larger the size of the frm, the greater is the likelihood of agreeing with allowing audit exemption. Therefore, it is suggested that small audit frms (with 5 or fewer employees) merge and focus on activities that contribute more added value such as consultancy. In so doing, auditors from these frms would be required to improve their knowledge and capacity by offering these services and not merely focusing on traditional audit work for SMEs. This is because SMEs are known to have limited resources and capacity and thus would be expected to have poor internal control. The requirement of a mandatory audit for such frms might lead auditors to compromise their independence. Thus, the government Asian Academy of Management (AAM) 2016 Article PeerReviewed application/pdf en http://eprints.usm.my/36678/1/aamj21022016_7.pdf Haron, Hasnah and Ismail, Ishak and Ganesan, Yuvaraj and Hamzah, Zulhawati (2016) Audit Exemption For Small And Medium Enterprises: Perceptions Of Malaysian Auditors. Asian Academy of Management Journal (AAMJ), 21 (2). pp. 1-30. ISSN 1394-2603 http://web.usm.my/aamj/21022016/aamj21022016_7.pdf |
| spellingShingle | HD28-70 Management. Industrial Management Haron, Hasnah Ismail, Ishak Ganesan, Yuvaraj Hamzah, Zulhawati Audit Exemption For Small And Medium Enterprises: Perceptions Of Malaysian Auditors |
| title | Audit Exemption For Small And
Medium Enterprises: Perceptions Of
Malaysian Auditors |
| title_full | Audit Exemption For Small And
Medium Enterprises: Perceptions Of
Malaysian Auditors |
| title_fullStr | Audit Exemption For Small And
Medium Enterprises: Perceptions Of
Malaysian Auditors |
| title_full_unstemmed | Audit Exemption For Small And
Medium Enterprises: Perceptions Of
Malaysian Auditors |
| title_short | Audit Exemption For Small And
Medium Enterprises: Perceptions Of
Malaysian Auditors |
| title_sort | audit exemption for small and
medium enterprises: perceptions of
malaysian auditors |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/36678/ http://eprints.usm.my/36678/ http://eprints.usm.my/36678/1/aamj21022016_7.pdf |