The Review of Effective Factors in Auditor's Tendency to Issue Limitation Paragraph rather than Disagreement Paragraph in Audits Reports of Financial Statements

This paper reviews the reasons for the auditors’ tendency to issue limitation paragraph rather than disagreement paragraph in audit reports of the financial statement. Some researches show that the specifications of the management and the commercial firm being audited affect the opinion shopping of the auditors. Other researches state that there is a relation between the specifications of the audit firm, the manner of the auditors’ judgment toward the importance at the reporting level and the type of the audit opinions. The statistical samples of this research include 204 auditors selected among the supervisor, manager and partner in audit firms and Audit Organization. The research methodology of this paper is library based and the survey using questionnaire. The Likert Scale is used to answer the questions of the questionnaire. Also, the statistical software used in this paper is SPSS-18.
The results show that the specifications of the management of the commercial firm, the specifications of the commercial firm being audited, competition in auditing and quality of auditing affect the issuance of limitation paragraph rather than disagreement paragraph in audit reports of the financial statements.