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This study is concerned with the applicability of entropy of financial statements' elements as an approach to analytical review procedures. Analytical procedures are an integral part of any audit conducted in accordance with Generally Accepted Auditing Standards. And accordingly, its use as a method of collecting audit evidence could improve both efficiency and effectiveness of an



audit.
The objective of this study was to determine whether any relation exist between the entropy of financial statement elements and audit adjustments. To test the research hypotheses, the financial
information of sample companies were extracted and correlated with corresponding audit adjustments. The results indicated a statistically significant relationship between entropy of certain financial statement elements and subsequent audit adjustment.
The findings of this study could be of interest to the audit profession, especially in the design and use of analytical review procedures in the audit process