Title

An analysis of materiality and reasonable assurance: Professional mystification and paternalism in auditing

Authors

Authors

R. W. Roberts;P. D. Dwyer

Comments

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Abbreviated Journal Title

J. Bus. Ethics

Keywords

auditing; materiality; paternalism; professionalism; public accounting; reasonable assurance; Business; Ethics

Abstract

Critical analyses of the audit profession have become more common in recent years. Many of these analyses focus on the entire audit profession in developing their criticisms and concerns. In this paper, the scope of analysis is narrowed to examine in depth the auditing profession's use of the concepts of reasonable assurance and materiality in audit performance and audit communications. Reasonable assurance and materiality are the terms that auditors use to describe the scope of their responsibility to the public. Similarly, reasonable assurance and materiality are the key determinants of audit effort. An overview of official guidance, practitioner reports, and academic research reveals that these two key concepts are not well specified nor are they consistently applied in audit practice. These findings are evaluated from two competing perspectives on professions - the traditional, functionalist perspective and the critical theorists' perspective. Evaluation from the latter perspective leads to a conclusion that the profession's use of these key terms to guide practice and communication leaves the profession open to charges of mystification and unjustified paternalism.

Journal Title

Journal of Business Ethics

Volume

17

Issue/Number

5

Publication Date

1-1-1998

Document Type

Article

Language

English

First Page

569

Last Page

578

WOS Identifier

WOS:000075069900009

ISSN

0167-4544

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