It's all about audit quality: Perspectives on strategic-systems auditing

Accounting, Organizations and Society

Volumn 32, Issue 4-5, 2007, Pages 463-485

  Peecher, Mark E ^a   Schwartz, Rachel ^a   Solomon, Ira ^a  

^a UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33847030673     PISSN: 03613682     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.aos.2006.09.001     Document Type: Article

References (76)

1. AICPA (1977). Statement on auditing standard No. 16: The independent auditor's responsibility for the detection of errors or irregularities. New York.
2. AICPA (1981). Statement on auditing standard No. 39: Audit sampling. New York.
3. AICPA (1988). Statement on auditing standard No. 53: The auditor's responsibility to detect and report errors and irregularities. New York.
4. AICPA (1997). Statement on auditing standard No. 82: Consideration of fraud in a financial statement audit. New York.
5. AICPA (2002). Statement on auditing standard No. 99: Consideration of fraud in a financial statement audit. New York.
6. AICPA (2004). Codification of Auditing Standards (Including AICPA and PCAOB auditing and attestation standards). New York.
7. Al-Tuwaijri S.A., Christensen T.E., and Hughes II K.E. The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach. Accounting, Organizations, and Society 29 (2004) 447-471
8. Amir E., and Lev B. Valve-relevance of non financial information: the wireless communications industry. Journal of Accounting and Economics 22 (1996) 3-30
9. Anderson E., Fornell C., and Lehmann R. Customer satisfaction, market share, and profitability: evidence from Sweden. Journal of Marketing 56 (1994) 53-66
10. Antle R. An agency model of auditing. Journal of Accounting Research 20 Autumn (1982) 503-527
11. Ashton, R. H., Kleinmuntz, D. N., Sullivan, J. B., & Tomassini, L. A. (1989). Audit decision making. In A. R. Abdel-khalik, & I. Solomon (Eds.), Research opportunities in auditing: The second decade. American Accounting Association, Auditing Section.
12. Ballou B., Earley C.E., and Rich J. The impact of strategic positioning evaluation on auditor judgments about business process performance. Auditing: A Journal of Practice & Theory 23 September (2004) 71-88
13. Bell, T., Marrs, F., Solomon, I., & Thomas, H. (1997). Auditing organizations through a strategic-systems lens: The KPMG business measurement process. KPMG LLP.
14. Bell, T. B., Peecher, M. E., & Solomon, I. (2002). The strategic-systems approach to auditing. In T. Bell, & I. Solomon (Eds.), Cases in strategic-systems auditing: KPMG and University of Illinois at Urbana-Champaign Business Measurement Case Development and Research Program (pp. 1-34). KPMG LLP.
15. Bell, T. B., Peecher, M. E., & Solomon, I. (2005). The 21st century public company audit: Conceptual elements of KPMG's global audit methodology. KPMG, LLP.
16. Bell T.B., Landsman W.R., and Shackelford D.A. Auditors' perceived business risk and audit fees: Analysis and evidence. Journal of Accounting Research 39 1 (2001) 35-43
17. Bell, T., & Solomon, I. (Eds.) (2002). Cases in strategic-systems auditing: KPMG and University of Illinois at Urbana-Champaign Business Measurement Case Development and Research Program. KPMG LLP.
18. Bertalanffy L.V. General system theory. Foundations, development, applications (1968), George Braziller, New York
19. Blokdijk, H., Drieenhuizen, F., Simunic, D.A., & Stein, M. T. (2003). Determinants of the mix of audit procedures: Key factors that cause auditors to change what they do. Working paper, The University of British Columbia.
20. Booth Sweeney L., and Sterman J.D. Bathtub dynamics: initial results of a systems thinking inventory. Systems Dynamics Review 16 4 (2000) 249-294
21. Brazel, J. F., Jones, K., & Zimbelman, M. F. (2006). What can nonfinancial measures tell us about the likelihood of fraud? Unpublished working paper.
22. Brehmer B. Dynamic decision making: human control of complex systems. Acta Psychologica 81 (1992) 211-241
23. Brickley J.A., Smith C.W., and Zimmerman J.L. Organizational architecture: A managerial economics approach (1996), Richard D. Irwin, New York
24. Brief R.P. SEC in the matter of McKesson & Robbins: Report on investigation (1982), Garland Publishing Inc, New York
25. Brunswik E. Organismic achievement and environmental probability. Psychological Review 50 (1943) 255-272
26. Campbell, S. & Hughes, M. (2005). Forward. In T. Bell, M. Peecher, & I. Solomon (Eds.), The 21st century public company audit: Conceptual elements of KPMG's global audit methodology. KPMG LLP.
27. Chesbrough H., and Rosenbloom R.S. The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies. Industrial and Corporate Change 11 3 (2002) 529-555
28. Curtis, E., & Turley, S. (2006). The business risk audit - a longitudinal case study of an audit engagement. Working paper.
29. Cushing B.E., and Loebbecke J.K. Analytical approaches to audit risk: a survey and analysis. Auditing: A Journal of Practice & Theory Fall (1983) 23-41
30. Domanick J. Faking it in America: Barry Minkow and the Great ZZZZ Best Scam (1989), Contemporary Book, Chicago
31. Dopuch, N., & King, R. R. (1991). Research monograph number 19: Experimental tests of auditing as a credibility generating mechanism. The Canadian Certified General Accountants' Research Foundation.
32. Einhorn H., and Hogarth R. Judging probable cause. Psychological Bulletin 99 (1986) 3-19
33. Fischhoff B., Lichtenstein S., Slovic P., Derby S.L., and Keeney R.L. Acceptable risk (1981), Cambridge University Press, Cambridge
34. Francis, J., Richard, C., & Vanstraelen, A. (2006). Assessing France's joint audit requirement: are two heads better than one? Unpublished working paper, University of Missouri-Columbia.
35. Friedman T.L. The world is flat (2005), Farrar, Straus and Giroux, New York
36. Gell-Mann M. The quark and the jaguar: Adventures in the simple and the complex (1994), W.H. Freeman and Company, New York
37. Hammond K.R. Probabilistic functioning and the clinical method. Psychological Review 62 (1955) 255-262
38. Hecht, G. W. (2004). Systems thinking, mental representations, and unintended consequence identification. Doctoral Thesis. University of Illinois at Urbana-Champaign.
39. Hughes II K.E. The value relevance of nonfinancial measures of air pollution in the electric utility industry. The Accounting Review 75 2 (2000) 209-228
40. International Auditing and Assurance Standards Board (IAASB). (2005). Handbook of international auditing, assurance, and ethics pronouncements 2005 Edition (February).
41. Ittner C., and Larcker D. Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research 36 Supplement (1998) 1-35
42. Jacobson M.J. Problem solving, cognition, and complex systems: differences between experts and novices. Complexity January/February (2001) 41-49
43. Jeppesen K.K. Reinventing auditing, redefining consulting and independence. The European Accounting Review 7 3 (1998) 517-539
44. Kapmeier, F. (2004). Findings from four years of bathtub dynamics at higher management education institutions. In M. Kennedy, G. W. Winch, R. S. Langer, J. I. Rowe, & J. M. Yanni (Eds.), Proceedings of the 22nd international systems dynamics conference.
45. Kennedy J., Kleinmuntz D.N., and Peecher M.E. Journal of Accounting Research 35 Supplement (1997) 105-123
46. Kinney W.R. A note on compounding probabilities in auditing. Auditing: A Journal of Practice & Theory Spring (1983) 13-22
47. Kinney W.R. Achieved audit risk and the audit outcome space. Auditing: A Journal of Practice & Theory 8 Supplement (1989) 67-84
48. Kinney, W. R. (1997). Forward. In T. Bell, F. Marrs, I. Solomon, & H. Thomas (Eds.), Auditing organizations through a strategic-systems lens: The KPMG business measurement process. KPMG LLP.
49. Knechel, R. W. (2005). The business risk audit: Origins and obstacles (and opportunities?). Working paper. University of Florida.
50. Koonce L. Explanation and counterexplanation in analytical review. The Accounting Review January (1992) 59-76
51. Kruglanski A.W., and Webster D.M. Motivated closing of the mind: "seizing" and "freezing". Psychological Review 103 2 (1996) 263-283
52. Levitt S.D., and Dubner S.J. FREAKONOMICS (2005), HarperCollins Publishers Inc, New York
53. Lyon J.D., and Maher M.W. The importance of business risk in setting audit fees: evidence from cases of client misconduct. Journal of Accounting Research 43 1 (2005) 133-151
54. Malacinski, A., Dominick, S., & Hartrick, T. (2001). Measuring Web Traffic, part 1. http://www-128.ibm.com/developerworks/Web/library/wa-mwt1/ (accessed March 24, 2006).
55. Mautz R.K., and Sharaf H.A. The philosophy of auditing (1961), American Accounting Association, Evanston
56. Messier W.F., Glover S.M., and Prawitt D.F. Auditing & assurance services: A systematic approach. 4th ed. (2006), McGraw-Hill Irwin, New York
57. Mettenheimer H.J. Auditor's guide. Analyzed and restored by P.L McMickle and P.H. Jensen in The auditor's guide of 1869 (1988) (1869), Garland Publishing, New York
58. Montgomery R.H. Fifty years of accountancy (1939), The Ronald Press, Co., New York
59. Nagar V., and Rajan M.V. Measuring customer relationships: the case of the retail banking industry. Management Science 51 6 (2005) 904-919
60. O'Donnell E., and Schultz J. The halo effect in business-risk audits: can strategic risk assessment bias auditor judgment about accounting details?. The Accounting Review 80 3 (2005) 921-940
61. Olken, Benjamin A. (2005). Monitoring Corruption: Evidence from a Field Experiment in Indonesia. Harvard University and NBER working paper.
62. Robson, K., Humphrey, C., Khalifa, R., & Jones, J. (2005). Transforming audit technologies: Business risk audit methodologies and the audit field. Working paper.
63. Securities and Exchange Commission (SEC) (2003). Report pursuant to Section 704 of the Sarbanes-Oxley Act of 2002.
64. Securities and Exchange Commission. (2005). Litigation release No. 19454. Accounting and auditing enforcement release No. 2341. SEC charges seven individuals with aiding and abetting financial fraud at Royal Ahold's US foodservice subsidiary for signing and returning false audit confirmations. (November 2). http://www.sec.gov/litigation/litreleases/lr19454.htm (accessed April 30, 2006).
65. Senge P.M. The fifth discipline: The art and practice of the learning organization (1990), Doubleday, New York
66. Shibano T. Assessing audit risk from errors and irregularities. Journal of Accounting Research 28 Supplement (1990) 110-140
67. Sorensen J.E., and Sorensen T.L. Detecting management fraud: Some organizational strategies for the independent auditor. In: Elliott R.K., and Willingham J.J. (Eds). Management fraud: Detection and deterrence (1980), Petrocelli Books, Inc., New York 195-206
68. Sprague C.E. Philosophy of accounts (1907), Ronald Press, New York
69. Staub W.A. Auditing developments during the present century (1942), Havard University Press, Cambridge, MA
70. Sterman J.D. Modeling managerial behavior: Misperceptions of feedback in a dynamic decision making experiment. Management Science 35 3 (1989) 321-339
71. Sterman J.D. Business dynamics: Systems thinking and modeling for a complex world (2000), Irwin McGraw-Hill
72. Surowiecki J. The wisdom of crowds: Why the many are smarter than the few and how collective wisdom shapes business, economies, societies, and nations (2004), Doubleday
73. Wallace W.A. Auditing. 3rd ed. (1995), South-Western College Publishing
74. Warren K. Competitive strategy dynamics (2002), John Wiley & Sons Ltd
75. Wilks T.J., and Zimbelman M.F. Using game theory and strategic reasoning concepts to prevent and detect fraud. Accounting Horizons 18 3 (2004) 173-184
76. Zimbelman M.F., and Waller W.S. An experimental investigation of auditor-auditee interaction under ambiguity. Journal of Accounting Research Supplement (1999) 135-155