Journal article
Australian proprietary companies' demand for external auditing
Australian Accounting Review, Vol.8(1), pp.67-72
1998
Abstract
A study indicates that the 3 criteria selected by the Corporations Law Simplification Task Force for determining the size of proprietary companies may be reasonable estimators. The criteria are gross operating revenue of $10 million, total assets of $5 million, and 50 employees. If the size test is applied, it is highly likely that most large proprietary companies (those that meet at least 2 of the 3 criteria would have had periodic audits voluntarily regardless of the legislation, for reasons other than lenders demand. When companies that indicated lenders' requests as the fundamental reason for seeking an audit were excluded from the analysis, the size criteria were still shown to be significant factors. However, the findings do not necessarily support the exactness of the size tests as specified in the Corporations Law Amendments. The reasonableness of the size test is considered and the proposition that proprietary company audits are not all legislation-driven is evaluated.
Details
- Title
- Australian proprietary companies' demand for external auditing
- Authors
- Peter Baxter (Author) - University of the Sunshine Coast - Faculty of BusinessJ Pragasam (Author) - University of Southern Queensland
- Publication details
- Australian Accounting Review, Vol.8(1), pp.67-72
- Publisher
- C P A Australia
- Date published
- 1998
- DOI
- 10.1111/j.1835-2561.1998.tb00081.x
- ISSN
- 1035-6908
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99448735302621
- Output Type
- Journal article
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