An analysis of the factors influencing the audit opinion of cities in the Philippines during the COVID-19 pandemic

Date of Publication

7-2022

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Advisor

Florenz C. Tugas

Defense Panel Chair

Mark Vincent B. Bendo

Defense Panel Member

Ellery D. De Leon
Florenz C. Tugas

Abstract/Summary

The COVID-19 virus outbreak has led to an unprecedented challenge to the world because of its adverse impacts on humanity. Due to its alarming effects, local government units are receiving more funds than usual to combat the negative effects of the pandemic and protect the citizens of the country. Thus, it is crucial for the financial statements of the government to be audited properly. Auditors play an important role in auditing since their issued audit opinions will serve as the basis for stakeholders' decision-making. The public can also determine whether the funds are properly used for the welfare of the people. Consequently, audit opinion may be affected by several factors. This study, therefore, aims to determine factors that may influence the opinion of auditors during the pandemic. To achieve this, a sample of 104 cities was used and ordinal logistic regression was utilized to statistically examine the gathered data. The results showed that the independent variables have no influence on the type of audit opinion individually. As a whole, the independent variables influence the type of audit opinion regardless of whether the effect of COVID-19-related disclosures was considered. To support the results, three auditors and two accountants shared their insights and agreed with the results, except for compliance with government accounting standards, which they deemed influenced the audit opinion. The differences among the related literature, results of this study, and insights from interviews can be associated with leadership, creating the Underlying Influence Theory, which affects the conduct and results of an audit.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Local finance—Philippines—Auditing; COVID-19 Pandemic, 2020- —Influence

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Embargo Period

7-4-2022

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