The Use of ANOVA Method to Obtain Audit Evidence on the Effect of Variation of the Industry Position and Performance Financial Ratios

Author:Univ. Prof. Elisabeta JABA, Ph.D.; Ioan-Bogdan ROBU, Ph. D. Student; Univ. Lecturer Christiana Brigitte BALAN, Ph.D.; Mihaela-Alina ROBU, Ph. D. Student

JEL:C12, C58, M41, M42

DOI:

Keywords:audit evidence, financial ratios, analisys of variance, contrasts, post-hoc tests

Abstract:
The study aims to obtain audit evidence based on statistical evaluation of variation of position and performance financial indicators depending on the activity field. The ANOVA method has been used in the research with contrast analysis and multiple comparisons. The data analyzed were collected from reported financial statements by companies in financial year 2010, for a sample of 141 firms listed on the New York Stock Exchange. Study results reveal significant differences between mean values of financial indicators proposed in the study, due to effect of the activity field of the audited firm. Statistical information obtained may be useful to the auditor in planning the mission and obtain audit evidence.

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