Factors influencing voluntary audit among small and medium enterprises: the Malaysian evidence / Erlane K Ghani, Syakir Munir Ismail Munir and Zuraidah Mohd Zam

Ghani, Erlane K and Ismail Munir, Syakir Munir and Mohd Zam, Zuraidah (2019) Factors influencing voluntary audit among small and medium enterprises: the Malaysian evidence / Erlane K Ghani, Syakir Munir Ismail Munir and Zuraidah Mohd Zam. In: ICAM2019 – International Conference on Accounting and Management. Faculty of Accountancy, Universiti Teknologi MARA Puncak Alam, Selangor, p. 98. ISBN 978-967-17038-0-9

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Abstract

In Malaysia, the Small and Medium Enterprises (SMEs) are encouraged to get their financial statements audited although such practice is on a voluntary basis. This study examines the voluntary practices of the SMEs in getting their financial statements audited. Specifically, this study examines the factors influencing the voluntary audit among the SMES. Three factors are chosen namely, improved quality of financial statements, managerial ownership and managers’ perception towards voluntary audit. Using questionnaire as the research instrument on 70 SMEs, the results show that managerial ownership and managers’ perception towards voluntary audit influence the SMEs to get their financial statements audited. On the other hand, the results show that there is a negative relationship of the improvement quality of financial statement towards voluntary audit among the SMEs. The findings of this study provide further understanding on the SMEs’ action in willingness to adopt one practice. In addition, this study also provides valuable information to the Malaysian regulatory and professional accounting bodies in their debates on providing audit exemption for the SMEs in Malaysia.

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Item Type: Book Section
Creators:
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Ghani, Erlane K
UNSPECIFIED
Ismail Munir, Syakir Munir
UNSPECIFIED
Mohd Zam, Zuraidah
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Subjects: H Social Sciences > HD Industries. Land use. Labor > Small business. Medium-sized business
H Social Sciences > HJ Public Finance > Auditing
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Accountancy
Page Range: p. 98
Item ID: 44169
Uncontrolled Keywords: Financial statements; Voluntary audit; Improved quality; Managerial ownership; Managers’ perception
URI: https://ir.uitm.edu.my/id/eprint/44169

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44169

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