AN ECONOMETRICAL ANALYSIS OF THE AUDITING COMPANY’S SIZE AS AN INDICATOR OF MATERIALITY

This paper reports interview evidence on audit materiality and the answers to the variables regarding the size of the companies,which is audited and the size of auditing company. Significant findings from the research interviews are Focus-Groups Questionnaires as a Method of Collecting Qualitative Data, in our case the group being the 215 CPA from IEKA, Albania.We want to bring out the Albanian auditor characteristic in professional judgment, that is depended in the size of the society who audited or in the size of auditing society, and this audit work we see the experience versus calculative methods. Risks and experience are the methods that Albanian CPAs choose to determine the materiality. The result of the study can have significant implication for IEKA and the Quality Audit Control which takes place once every five years for the experts on the field and for the young experts, it takes place once every two years. The young experts use professional judgment more than personal judgment