Auditor’s Perception Regarding the Audit of Complex Estimates

This article aims to analyze auditors' perceptions regarding the audit of complex accounting estimates. Using a qualitative approach, twelve auditors were interviewed and the data were analyzed using the content analysis method. The study shows that the greatest difficulty for the auditor lies in obtaining evidence to corroborate and confirm unobservable assumptions underlying a complex estimate. Furthermore, according to interviewees, the most likely cause of error in complex estimates is the lack of involvement of more experienced professionals. The results also suggest that Big4 auditors are more likely to conduct a more thorough risk assessment, and to use tests of controls in their response to risk. The study is original and contributes to the users of auditor’s work. In addition, the study uses a model that can be replicated in other types of audit research in Brazil to better understand the audit process.

Keywords:
Audit; Complex Estimates; Auditor; Professional Judgment