Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE credits
Problem background and problematization: Since the law amendment regarding the statutory audit back in 2010, small companies have given the opportunity to opt-out auditing. The benefits of auditing have been studied and debated before, but there is a lack of knowledge regarding the internal benefits for the company. Especially if there is regional difference in perceived benefit provided by the audit.
Research question: Does private limited companies from different regions, which may be affected by a future change in legislation regarding auditing, perceive the benefits of auditing differently?
Purpose: The focus is to determine whether there is any significant difference between the companies perceived internal benefit of auditing from different Swedish municipalities. This knowledge would contribute to a better understanding of how, and if, changes should be made to improve the audit profession and the contribution it has on the business environment. A sub purpose is to see if the companies perceive a benefit of auditing at all, and if they believe it to exceed the cost of auditing. Another interest aspect is to examine if a company would still have an audit, even if it is voluntary, when they consider the benefit of auditing to exceed the cost.
Methodology: A quantitative study with a deductive approach is chosen to perform this study. The practical procedure to apply this is through a questionnaire in which companies, which can be affected by a future law amendment regarding the audit requirements, is investigated.
Theory: The study is based on the agency theory. It describes the main reason and the overall benefit of auditing. Previous studies in the same subject are also the basis for this research. The population consists of over 26 000 companies of which 1000 of these are asked to answer the questionnaire. Data from 139 companies was received. Seven internal benefits have been defined through previous studies
Analysis & Conclusion: The result from the questionnaire is unreliable. The data is analyzed with three statistical methods, Chi-Square, ANOVA and a Regression Analyze. Of the seven internal benefits, only one could reveal a regional difference. The analysis of the study concludes that it is still unclear if private limited companies from different regions, which may be affected by a future change in legislation regarding auditing, perceive the benefits of auditing differently.
2015. , 79 p.