The Neighbor Principle, Principal Agent and Stakeholder Theories: Proposed Model to Address Challenges of Digital and Audit Analytics (Presentation Slides)

Abstract

In view of subjectivity and judgment based elements involved in the determination of critical audit matters, as well as the move to a principles based framework – critical audit matters determined using such a framework, this presentation aims to highlight why a combination of bright line rules and high level principles should be applied to the more innovative phases involving critical decision making – the application of this combination of rules not only reflecting the level of flexibility offered by such a combination, but also the priority accorded to such management decisions which may also embody tactical and strategic elements.