Percorrer por autor "Fernandes, Tiago Pereira"
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- Materiality level in auditing : its evolution and impacts: the case of the UKPublication . Fernandes, Tiago Pereira; Alves, Paulo Alexandre PimentaThis dissertation explores the evolving application of materiality in auditing, focusing on how auditors determine and disclose materiality thresholds. The study takes advantage of the regulatory context in the United Kingdom, where ISA 700 requires all companies listed on the London Stock Exchange (LSE) to disclose their audit materiality levels. This unique requirement enables a detailed investigation into auditor practices across a large and diverse sample. A literature review highlights the growing relevance of materiality in auditing, an also reveals a gap in empirical studies examining how it is operationalized by auditors. To address this, the study analyses FTSE 350 companies between 2015 and 2022, revising and completing an extensive dataset of audit disclosures and financial indicators. The research examines whether auditor changes influence materiality decisions and tests the hypothesis of an inverse relationship between audit risk and materiality. Additionally, it introduces an exploratory model to assess whether materiality thresholds respond to company performance, such as revenue or profit declines. The findings show that auditor changes often coincide with adjustments in materiality levels and benchmarks, reflecting differences in audit strategy and perceived risk. However, no significant relationship was found between company underperformance and materiality adjustments. These insights contribute to the understanding of audit materiality, supporting investors, regulators, and academics in addressing transparency gaps, and suggest a potential need for enhanced regulatory guidance on materiality determination.