The Impact of Quantitative Measurement of Relative Importance on the Efficiency and Effectiveness of Auditing
DOI:
https://doi.org/10.24086/cuejhss.v9n2y2025.pp106-111Keywords:
Quantitative Measurement, Materiality, Audit Efficiency, Audit Effectiveness, Fraud DetectionAbstract
This study aims to explore the impact of quantitative measurement of materiality on enhancing the efficiency and effectiveness of audit processes. The research employed a quantitative design using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data collected from questionnaires distributed to external auditors and financial managers. The results indicate that the quantitative measurement of materiality, both at the account balance level and the financial statement level, positively and significantly contributes to improving audit effectiveness and fraud detection, while it does not show a significant effect on audit efficiency. The study also highlights key characteristics of quantitative measurement, such as precision in planning and execution, standardization of judgments, and increased transparency, which collectively enhance audit effectiveness. The research concludes that adopting quantitative measurement of materiality serves as a strategic tool to improve audit quality, emphasizing the importance of professional training, technological infrastructure development, and cost-benefit analysis to ensure sustainable implementation.
Downloads
References
Agha, A. M., Massoudi, A. H., & Zaidan, M. N. (2023). The Influence of Individual, Environmental, Technology, and Manufacturing Factors on Iraqi Gas and Oil Companies. Cihan University-Erbil Journal of Humanities and Social Sciences, 7(1), 136-147. DOI: https://doi.org/10.24086/cuejhss.v7n1y2023.pp136-147
Arens, A. A., Elder, R. J., & Beasley, M. S. (2017). Auditing and Assurance Services: An Integrated Approach. Pearson.
Choudhary, P. (2023). Auditors' Quantitative Materiality Judgments: Properties and Implications. Journal of Accounting Research, 61(5), 1303–1351. Management, 32(1), 1–15. DOI: https://doi.org/10.1111/1475-679X.12286
Dwyer, K. A. (2022). Audit Materiality and Audit Effort: Evidence From Materiality Benchmarks. Accounting and Finance Research, 11(1), 1–20. DOI: https://doi.org/10.52399/001c.36802
Glover, S. M., Prawitt, D. F., & Spilker, B. C. (2012). Internal Auditing: Assurance & Advisory Services. Wiley.
IAASB. (2018). International Standard on Auditing (ISA) 320: Materiality in Planning and Performing an Audit. IFAC.
Inés Antón, O. de (2025). Convergence in Audit Materiality: The Impact of Public Disclosure. Journal of Accounting and Public Policy, 44(2), 1–15. DOI: https://doi.org/10.1016/j.jaccpubpol.2025.107322
Knechel, W. R., van Staden, C., & Sun, L. (2013). Auditor materiality judgments: Theory and evidence. Auditing: A Journal of Practice & Theory, 32(2), 77–102.
Massoudi, A. (2025) Predicting the power of entrepreneurial orientation in improving the level of product innovation. Business education as a mediator. Journal of Management and Business Education, 8(1), 58-73. https://doi.org/10.35564/jmbe.2025.0004 DOI: https://doi.org/10.35564/jmbe.2025.0004
Massoudi, A., & Fatah, S. (2024). Deceptive Point-of-Sale Marketing Tactics Impact on Consumer Purchase Intentions with an Attitude as a Mediator. Inquietud Empresarial, 24(2), 1-27. DOI: https://doi.org/10.19053/uptc.01211048.17449
Messier, W. F., Glover, S. M., & Prawitt, D. F. (2014). Auditing & Assurance Services: A Systematic Approach. McGraw-Hill.
Tarkh, A. S. (2024). The Effect of Quantitative Measurement of Risks of Material Errors on Audit Efficiency. International Academic Research Journal of Business and Management, 4(1), 1–15.
Tavares, M. C. (2025). Audit 5.0 in Risk and Materiality Assessment. Journal of Risk and Financial Management, 18(8), 1–15. DOI: https://doi.org/10.3390/jrfm18080419
Velte, P. (2025). Audit Quality and Materiality Disclosure Quality in Integrated Reporting: The Moderating Effect of Carbon Assurance Quality. Corporate Social Responsibility and Environmental Management, 32(1), 1–15. DOI: https://doi.org/10.1002/csr.3153
Zaidan, M. & Massoudi, A. (2025). The Impact of Technological and Economic Factors on Cybersecurity Management and MSEM Performance. Internext, International Business and Management Review, 20(3), e847. https://doi.org/10.18568/internext.v20i3.847 DOI: https://doi.org/10.18568/internext.v20i03.847
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Hashem MHD. Safi
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License [CC BY-NC-ND 4.0] that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
