The contribution of analytical procedures in supporting corporate governance: A field study in Algeria

Farouk, Didaoui Mohamed; Ismail, Boughazi Article The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly Provided in Cooperation with: University of Information Technology and Management, Rzeszów Suggested Citation: Farouk, Didaoui Mohamed; Ismail, Boughazi (2024) : The contribution of analytical procedures in supporting corporate governance: A field study in Algeria, Financial Internet Quarterly, ISSN 2719-3454, Sciendo, Warsaw, Vol. 20, Iss. 3, pp. 91-102, https://doi.org/10.2478/fiqf-2024-0021 This Version is available at: https://hdl.handle.net/10419/329882 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0/ 10.2478/fiqf-2024-0021 Abstract This study aimed to shed light on the contribution of analytical procedures (APs) to supporting corporate governance. This was achieved through a field study in which a questionnaire was created and disseminated to a random sample of external auditors in Algeria. The data collected underwent analysis using the SPSS. The study concluded that APs play a crucial role in bolstering corporate governance by analyzing the company's continuity capability and identifying financial problems facing the companies. In addition, APs enhance the quality and efficiency of external auditing, especially considering auditing as one of the key mechanisms that support corporate governance. JEL classification: M42, G34, G32 Keywords: Analytical Procedures, External Audit, Corporate Governance, the company's continuity capability Received: 10.04.2024 Accepted: 05.08.2024 Cite this: Farouk, D.M. & Ismail, B. (2024). The contribution of analytical procedures in supporting corporate governance: A field study in Algeria. Financial Internet Quarterly 20(3), pp. 91-102. © 2024 Didaoui Mohamed Farouk and Boughazi Ismail, published by Sciendo. This work is licensed under the Creative Commons AttributionNonCommercial-NoDerivatives 3.0 License. 1 Faculty of Economic, Commercial, and Management Sciences, University of Ain Temouchent, Algeria, e-mail: [email protected], ORCID: https://orcid.org/0000-0002-9047-7851. 2 Faculty of Economic, Commercial, and Management Sciences, University of Ain Temouchent, Algeria, e-mail: [email protected], ORCID: https://orcid.org/0009-0005-3403-8263. Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 A study conducted by Imoniana et al. (2012) found that auditors, when faced with various testing requirements, tend to select a combination of tests that align with their preferences to fulfill audit objectives. This selection process is often influenced by the materiality of the accounts under scrutiny. These factors emerge as pivotal considerations for enhancing audit effectiveness when determining the APs to be employed and tested. Harwell (2010) asked a question about where corporate governance began, and it was determined that the origins of corporate governance date back to the early 20th century, before Berle and Means raised the question about the essence of corporate governance. 'Corporate governance' has existed since there were have been conflicts between investors and managers. Corporate governance is a fast-evolving practice in businesses. The global interest in corporate governance stems from its critical role in underpinning a company's operating framework. The adoption and implementation of corporate governance practices are expected to benefit the owners, as they commit to using the principles and mechanisms that, in the broadest sense, amount to effective monitoring of a company's activities. This is particularly true when principles of disclosure and transparency are adopted (Alfonso & Castrillón, 2021) The literature shows that there is no single, comprehensive, or widely acknowledged definition of corporate governance. However, most definitions of corporate governance share common elements, describing it as the policies, processes, and structures that organizations use to guide and manage their activities, accomplish their goals, and safeguard the interests of their varied stakeholders, all in line with appropriate ethical standards (Suzana et al., 2012) According to Borlea and Achim (2013) fundamental theories of corporate governance are rooted in agency theory and the theory of moral hazard. These theories further develop within stewardship theory and stakeholder theory and evolve into resource dependence theory, transaction cost theory, and political theory. Later, ethics theory, information asymmetry theory, and the theory of efficient markets were added to these concepts. The literature shows that governance and auditing have a significant impact on performance, although the direction of this impact remains undetermined. Empirical results are mixed and differ according to the measure of performance chosen (Noubbigh, 2008). External auditors are responsible for ensuring that a corporation complies with relevant laws and regulations, conducts Interest in governance has increased significantly in recent decades, especially after the financial crises that hit countries and major economies. Such as the 1997 financial crisis that affected Southeast Asian and Latin American countries and the 2008 global financial crisis. In addition, several giant companies went bankrupt. Most of these crises are caused by financial and administrative corruption, as well as a lack of supervision, accountability, and transparency. Adopting governance is followed by focusing on external auditing, which is considered the most essential mechanism to support the foundations of governance (Fan & Wong, 2005). External auditing provides unbiased financial and accounting information that reflects the true condition of companies, helping them identify strengths and weaknesses. It instills confidence among users of financial statements. There are many varieties of audit procedures used by auditors; analytical procedures (APs) are among the most important. The Enron debacle and other scandals have brought to light the debate over whether APs or traditional audit approaches based on substantive testing are more suitable (Lin & Fraser, 2003). These procedures are mainly based on the evaluation and study of the relationships between financial information as well as the study of fluctuations and deviations. APs are regarded as a method for auditors to acquire a deeper understanding of the audited companies and analyze the viability of the company, which leads to more effective and compelling audit process (Rose et al., 2020). This study's significance is evident in light of the growing interest in governance and its mechanisms. Additionally, the importance of the study is manifested in understanding APs as the most critical audit measures that contribute to enhancing the quality of auditing and raising the competence of auditors. The purpose of this study is to highlight the importance of APs as the most important audit procedures. In addition to identifying the role of APs in supporting corporate governance, especially in the context of the mutual relationship between auditing and governance, the study aims to address the following research question: How do analytical procedures contribute to supporting corporate governance? To address the research question, two hypotheses were formulated as follows: H1: Auditors in Algeria apply all types of APs and rely on them during all stages of the auditing process. H2: Analyzing the company's continuity capability through APs contributes to supporting corporate governance. Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 from analyses of the relationships between financial and non-financial data. Additionally, they involve analyses of deviations and identified relationships that contradict other relevant data or substantially diverge from predicted values (Pinho et al., 2023). These procedures are highly effective in detecting a significant number of material errors. Furthermore, it allows auditors to make better decisions and set more accurate expectations by adjusting a business-risk audit method and technological advancements. Furthermore, the efficiency of APs is demonstrated by their superior performance in error detection and predictive capability, which serves as the foundation for properly focusing the auditor's attention on errors that may necessitate a more thorough examination (Bendjaballah, 2021). These procedures help to assess the company's ability to continue operations, identify areas of risk, and then address and avoid them, as well as evaluate management performance (Moussa, 2013). Analytical procedures play a crucial role in the audit planning process by providing a comprehensive understanding of a client's business and industry. This understanding is essential for comparing current and prior year’s financial information or industry benchmarks to identify trends and unusual events that could impact the audit process. Furthermore, APs are instrumental in assessing a company's ability to continue as a going concern, enabling auditors to detect potential financial problems and predict the likelihood of financial failure (Abu Sharkh, 2012). They are also vital for detecting errors and anomalies in financial statements by highlighting unusual variations in financial components (Al-Jazwi, 2015). Additionally, APs contribute to reducing the need for extensive detailed testing by providing auditors with a clearer understanding of financial data and associated risks (Arens et al., 2012). Analytical procedures encompass various techniques that enhance the audit process through comparative analysis. One fundamental type involves comparing client data with industry benchmarks, which aids in understanding the client’s business and serves as an early warning system for potential financial difficulties (Matrood & Khilkhal, 2019). Another type is the comparison of current-year balances with those of prior periods, enabling auditors to identify significant changes that might necessitate increased scrutiny. Additionally, auditors compare client data with expected results its operations fairly, and maintains effective controls to prevent conflicts of interest and fraud. An audit committee composed of independent directors can oversee management, providing shareholders with assurance that they will receive accurate and complete information (Ferreira, 2018) Auditing plays a crucial role in strengthening corporate governance by providing independent assurance that financial statements are free from material misstatements. According to DeZoort and Salterio (2001), the effectiveness of audit committees, which are integral to governance frameworks, significantly affects audit quality. Their study highlights that the expertise and experience of audit committee members are critical in shaping the quality of audits and ensuring that governance objectives are met. Leonov et al. (2020) have carried out a study to explore the effectiveness of using analytical tools in performing APs to evaluate an organization’s involvement in suspicious activities. The study discovered that employing these tools in financial statement analysis helps auditors improve the effectiveness of analytical procedures in identifying suspicious operations and transactions. Previous studies have established compelling evidence indicating that APs contribute significantly to enhancing corporate governance within companies. These procedures serve to furnish management with crucial insights into the company's financial performance, enabling them to ascertain profitability. Additionally, they equip top management with the necessary data to assess and pinpoint areas of concern. Furthermore, through the identification of unfavorable variances, APs aid management in streamlining operations and reducing wastage (Changawa & Theuri, 2014). According to Kostiantyn et al. (2023), the utilization of APs in integrating reporting within corporate enterprises broadens the scope and objectives of auditors. Consequently, there is a growing imperative to enhance their competencies, both in directly conducting analytical assessments and in discerning indicators of data reliability for the application of APs. This includes exercising professional judgment in selecting alternative sources of information and detecting potential signs of data manipulation within the integrated reports of the enterprise. APs involve assessing financial information by examining the logical connections between financial and non-financial data (Kritzinger & Barac, 2017). These processes can alternatively be described as equivalent to assessments of financial data that come Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 potheses, and practices of boards of directors and their executive and non-executive directors. It is a field that focuses on the relationships between boards, shareholders, top management, and auditors (Maassen, 1999). Corporate governance has contributed significantly to the corporation's growth and development. The role of the company is not to create or provide administration and reap benefits in this manner. Companies are also responsible for societal development. It is impossible to ensure the company's growth by focusing solely on the company's interests and ignoring the overall development of the community. Corporate governance is critical to improving the economy's efficiency. A strong corporate governance framework within businesses fosters the trust required for smooth operation in a market economy. As a result, capital costs are reduced, and companies are incentivized to use resources efficiently, which benefits growth (Vukčević, 2012). Corporate governance studies consistently show the existence of various mechanisms for implementing governance principles. The mechanisms can be classified as follows. The internal mechanisms include several key elements. The board of directors is made up of people who are responsible for advancing the company's business. Directors elected by shareholder meetings are drawn from the director market, and they are responsible for oversight, decision-making, competence, and providing services to the corporation through their expertise and network (Collin et al., 2008). Executive management also plays a pivotal role in governance because leadership's tone has a significant impact on the organization's culture and controls. Executive management must operate under the broader oversight of directors and follow specific structural guidelines, which include internal controls, information dissemination, and financial statement certification (Banks, 2003). Additionally, internal control groups support both the board and executive management by providing objective analysis and supervision of the company's operations. These specialists act as a vital link between the board's strategic policies and the day-to-day operations that are the foundation of a company's activities. The organization has multiple internal control groups, including finance/accounting, risk management, operations/settlement, technology, law and compliance, and international (Banks, 2003). where auditors use non-financial data or historical trends to project account balances or cross-reference with other financial statements (Arens et al., 2012). Lastly, using non-financial data for comparisons provides a robust validation of financial data accuracy, as the correlation between financial and non-financial metrics enhances the precision of the auditors’ forecasts (Lounis, 2021). The timing of (APs) throughout the audit process is crucial for optimizing their effectiveness. At the planning stage, preliminary APs serve several purposes: they help auditors gain an understanding of the client’s business and its current state, assess the risk of significant errors, and determine the scope and nature of further audit procedures. This initial application is instrumental in shaping the audit strategy and plan (Matrood & Khilkhal, 2019). During the testing phase, APs are considered substantive when the auditor determines that they are superior in effectiveness or efficiency compared to detailed tests, aiming to reduce the risk of significant errors at the assertion level to an acceptable degree (Matrood & Khilkhal, 2019). In the completion phase, APs are performed as a general survey of the financial statements to determine whether they align with the auditor's understanding of the company (Fung, 2010). Analytical procedures can be categorized into different techniques based on their complexity and application. The simple descriptive technique is used to estimate an account's balance. It entails applying reasonableness tests to non-financial data, such as inquiries and auditor expectations, as well as reviewing internal and external non-quantitative information. The simple quantitative technique relies on estimating an account's balance. It entails applying reasonableness tests to non-financial data, such as inquiries and auditor expectations, as well as reviewing internal and external non-quantitative information (Al-Hajaia, 2022). In contrast, the advanced quantitative technique employs complex statistical analyses to predict account balances. These sophisticated methods enable auditors to compare actual balances with those derived from advanced statistical models, thus confirming the accuracy and reasonableness of financial data (Al-Jazwi, 2015). Corporate governance is a broad term that encompasses a variety of topics related to the concepts, hy- Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 auditor responsible to the shareholders for the conduct of the audit process. The auditor must ensure the accuracy of the information in the audit report, starting with its presentation at the institution's general assembly and continuing to any authority that relies on the report for decision-making (Benaissa & Boussouak, 2021). A descriptive methodology and an analytical approach were used to identify analytical procedures and their role in supporting the fundamentals of corporate governance in order to find a solution to the study's problem. The following study model was adopted: The external mechanisms: External mechanisms play a crucial role in enhancing corporate governance by influencing and regulating the behavior of organizations. These mechanisms can be classified into several categories. The market mechanism acts as a catalyst for governance by encouraging owners to seek out undervalued institutions. This market-driven approach prompts various stakeholders to collaborate effectively to enhance the company's value and achieve long-term sustainability. Laws and regulations also serve a vital function by defining the relationships, responsibilities, rights, and duties of each party that can contribute to governance (Boufatah, 2016). Additionally, the external audit mechanism ensures accountability by holding the Figure 1: Model of the study Analytic Procedures Corporate Governance Dependent Variable Independent Variable Source: Author’s own work. point Likert scale was used to determine trends in respondents' answers, and the SPSS program was used for statistical analysis. The study's population consists of Algerian external audit practitioners. A random sample of 60 auditors was selected, 60 questionnaire forms were distributed to the study sample, and 40 valid forms were retrieved, accounting for 72% of the total distributed forms. A questionnaire was used as the data collection tool, which included two sections, the first of which contained the sample's personal data, such as profession, number of years of experience, educational qualification, and specialization, and the second section included 29 statements divided into two axes, The fiveTable 1: Presentation the personal data of the sample Variables Categories Iteration Percentage Specialization Accounting 30 75.0% Finance 8 20.0% Economics 1 2.5% Business administration 1 2.5% Scientific Specialization Bachelor's degree 17 42.5% Master 11 27.5% Doctorate degree 7 17.5% Professional certificate 5 12.5% Profession Auditor 25 62.5% Accounting expert 15 37.5% Number of years of experience Less than 5 years 6 20.0% From 5 to 15 years old 17 42.5% Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 of experience, 42.5% of respondents have experience between 5 and 15 years, while 22.5% have experience between 16 and 25 years. Furthermore, 20% of respondents have over 25 years of experience, while 20% have less than 5 years of experience. This indicates that the sample individuals have a wide range of experience and sufficient practical qualifications to respond to the questionnaire credibly and objectively. The questionnaire's stability and validity were tested using Cronbach's alpha coefficient, and the Spearman correlation coefficient which measures the strength and direction of association between the score of each statement and the total score of the axis to which it belongs. Table 1, based on the profession variable, shows that 62.5% of respondents are auditors and 37.5% are accounting experts. This suggests that the respondents are qualified to respond to the questionnaire statements. In terms of scientific specialization, 95% of respondents work in finance and accounting. This is consistent with the requirements for practicing auditing in Algeria, demonstrating that they are capable and able to respond objectively. In terms of academic qualifications, 87.5% of respondents hold advanced university degrees. This demonstrates that they have a strong academic background, as well as the ability to understand and answer the questionnaire. In terms of years Variables Categories Iteration Percentage Number of years of experience From 16 to 25 years old 9 22.5% More than 25 years 8 20.0% Total - 40 100.0% Source: Author’s own work. Table 2: Stability coefficient and the validity coefficient Axis Paragraphs number Cronbach's alpha Spearman coefficient Axis no 1 17 0.87 Between 0.330* and 0.808** Axis no 2 12 0.82 Between 0.357* and 0.794** All axis 29 0.90 - Source: Author’s own work. significant at the 0.05 level, indicating that the questionnaire's axes are highly valid. The findings demonstrate the validity of the analysis as well as the sincerity and consistency of the questionnaire axes. Before testing the study's hypotheses, the data must be classified based on the degree of agreement. The Cronbach's alpha coefficients for the first and second axes are 0.87 and 0.82, respectively. Furthermore, the coefficient for all questionnaire axes reached 0.90, exceeding the reference value of 0.60. This indicates that the questionnaire statements are reliable and can be used in the study. The first axis' internal consistency coefficient, represented by the Spearman correlation coefficient, ranged from 0.330 to 0.808. While the second axis ranged from 0.357 to 0.794. All of these coefficients are Table 3: Ranking the degree of agreement on the study axes Mean Degree of approval 1 to 1.80 Strongly Disagree S-D 1.80 to -2.60 Disagree D 2.61 to 3.40 Neutral N 3.41 to 4.20 Agree A 4.20 to 5 Strongly Agree S-A Source: Author’s own work. a significance level of 0.05 with a one-sample t-test, and the arithmetic means and standard deviation were calculated as follows: H0: Auditors in Algeria do not apply all types of analytical procedures during all stages of the auditing process. According to the Studdent table (t-distribution table), the critical t-value at degree of freedom n — 1 = (40 — 1 = 39) and a significance level of 0.05 is 2.023. The first hypothesis is expressed in the questionnaire's first axis, which consists of 17 paragraphs divided into four dimensions. The hypothesis was tested at Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 H1: Auditors in Algeria apply all types of analytical procedures during all stages of the auditing process. Table 4: One Sample t-test for the first hypothesis Dimensions No Paragraphs Mean Std. Deviation T value Sig value Approval Degree Analytical procedures during the planning phase of the audit 1 Applying analytical procedures helps to understand the nature of the client's business 4.300 0.46410 17.716 0.00 S-A 2 The use of analytical procedures helps to gain a deeper understanding of the information systems within the company. 4.175 0.67511 11.008 0.00 A 3 Aps empower the auditor to detect underlying risks of fraud and manipulations in the financial statements 4.150 0.76962 9.450 0.00 A 4 Analytical procedures help identify the items, elements, and accounts that require closer scrutiny 4.275 0.55412 14.552 0.00 S-A 5 The auditor obtains appropriate evidential support while applying analytical procedures. 3.975 0.76753 8.034 0.00 A Procedures during the obtaining of audit evidence phase 6 Analytical procedures empower the auditor to identify potential distortions 3.950 0.78283 7.675 0.00 A 7 Relying on analytical procedures allows the auditor to reduce detailed tests 3.600 0.92819 4.088 0.00 A 8 Analytical procedures empower the auditor to assess the sufficiency of the evidence gathered. 3.875 0.68641 8.062 0.00 A 9 Analytical procedures aid the auditor in evaluating the accuracy and fairness of the financial statements, drawing upon their understanding of the audited company. 4.000 0.75107 8.421 0.00 A Analytical procedures during the conclusion, evaluation and reporting phase 10 Analytical procedures contribute to comparing the actual level of risk with the predetermined level of risk set by the auditor 3.775 0.97369 5.034 0.00 A 11 Analytical procedures help the auditor adopt a comprehensive and objective view of the financial statements and form a final opinion regarding the financial data's conformity, drawing on the auditor's understanding of the audited company's operations. 4.100 0.70892 9.814 0.00 A 12 Through the application of analytical procedures, the auditor conducts a comprehensive examination to evaluate the reasonableness of the financial statements as an integrated entity. 3.825 0.87376 5.972 0.00 A Type of analytical procedures 13 The auditor compares client and industry data 3.725 0.81610 5.619 0.00 A 14 The auditor compares client data with similar prior-period data 4.300 0.46410 17.716 0.00 S-A Didaoui Mohamed Farouk, Boughazi Ismail The contribution of analytical procedures in supporting corporate governance: A field study in Algeria Financial Internet Quarterly 2024, vol. 20 / no. 3 The results of the one-sample t-test for the first axis show that the calculated t-value is 13.235, which exceeds the critical t-value of 2.02. Furthermore, the significance level (sig) is 0.00, which is lower than the threshold of 0.05. As a result, we reject the null hypothesis (H0) and accept the alternative hypothesis (H1), confirming that Algerian auditors use various types of analytical procedures and rely on them at all stages of the auditing process. The second hypothesis is embodied in the questionnaire's second axis, which includes 12 items. The hypothesis was tested at a significance level of 0.05 with a one-sample t-test, and the arithmetic means and standard deviation were calculated as follows: H0: Analyzing the company's continuity capability through analytical procedures does not contribute to supporting corporate governance. H1: Analyzing the company's continuity capability through analytical procedures contributes to supporting corporate governance. According to Table 4, the majority of respondents agree or strongly agree on the extent to which auditors in Algeria use all types of analytical procedures and rely on them throughout the auditing process. The first and fourteenth paragraphs had the highest degree of agreement, with a mean score of 4.300, followed by the fourth paragraph (mean = 4.275), the second paragraph (mean = 4.175), the third paragraph (mean = 4.15), the eleventh paragraph (mean = 4.10), the ninth paragraph (mean = 4), the fifth and fifteenth paragraphs (mean = 3.975), the sixth paragraph (mean = 3.95), the eighth paragraph (mean = 3.875), the twelfth and sixteenth paragraphs (mean = 3.825), and the tenth paragraph (mean = 3.77) The table also shows that the first axis, "the extent to which auditors in Algeria apply all types of analytical procedures and rely on them during all stages of the auditing process," had an overall arithmetic mean of 3.975. This suggests that the first axis' statements are generally agreed upon. Dimensions No Paragraphs Mean Std. Deviation T value Sig value Approval Degree Type of analytical procedures 15 The auditor compares client data with client-determined expected results 3.975 0.86194 7.154 0.00 A 16 The auditor compares client data with auditor-determined expected results 3.825 0.90263 5.781 0.00 A 17 The auditor compares client data with expected results using nonfinancial data 3.400 0.93233 3.053 0.00 A - - All Paragraphs 3.975 0.42663 14.454 0.00 A Source: Author’s own work. Table 5: One Sample t-test for the second hypothesis No Paragraphs Mean Std. Deviation T value Sig value Approval Degree 1 The auditor contributes to establishing and 3.8500 0.86380 6.224 0.000 A 2 There is a difference in the audit process between the company applying governance 3.8500 0.89299 6.020 0.000 A 3 Using analytical procedures to analyze the company's continuity enhances the foundations of corporate governance 4.2000 0.79097 9.595 0.000 A 4 Analyzing the company's continuity through analytical procedures contributes to identifying financial problems, thereby strengthening support for corporate governance 3.9750 0.61966 9.951 0.000 A 5 Analyzing the company's ability to continue through analytical procedures contributes to supporting principles of information dissemination and transparency, as well as equal treatment of shareholders and other external investors 4.1250 0.60712 11.720 0.000 A