An examination of auditor planning judgements in a complex accounting information system environment

Contemporary Accounting Research

Volumn 24, Issue 4, 2007, Pages 1059-1083

  Brazel, Joseph F ^a   Agoglia, Christopher P ^b  

^a NORTH CAROLINA STATE UNIVERSITY   (United States)

^b DREXEL UNIVERSITY   (United States)

Author keywords

Accounting information systems; Audit planning; Audit risk model; Computer assurance specialist; IT audit specialist; Source competence

Indexed keywords

EID: 37549065530     PISSN: 08239150     EISSN: 19113846     Source Type: Journal    
DOI: 10.1506/car.24.4.1     Document Type: Article

References (66)

1. Abdolmohammadi, M. J., and J. Shanteau. 1992. Personal attributes of expert auditors. Organizational Behavior and Human Decision Processes 53 (2): 158-72.
2. Ajzen, I. 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes 50 (2): 179-211.
3. American Institute of Certified Public Accountants (AICPA). 1983. Statement on Auditing Standards No. 47: Audit risk and materiality in conducting an audit. New York: AICPA.
4. American Institute of Certified Public Accountants (AICPA). 1988. Statement on Auditing Standards No. 53: The auditor's responsibility to detect and report errors and irregularities. New York: AICPA.
5. American Institute of Certified Public Accountants (AICPA). 1996. Statement on Auditing Standards No. 80: Amendment to statement on auditing standards no. 31, Evidential matter. New York: AICPA.
6. American Institute of Certified Public Accountants (AICPA). 2001. Statement on Auditing Standards No. 94: The effect of information technology on the auditor's consideration of internal control in a financial statement audit. New York: AICPA.
7. American Institute of Certified Public Accountants (AICPA). 2002. Exposure draft: Understanding the entity and its environment and assessing the risks of material misstatement (assessing risks). New York: AICPA.
8. Anderson, U., L. Koonce, and G. Marchant. 1994. The effects of source competence information and its timing on auditors' performance of analytical procedures. Auditing: A Journal of Practice & Theory 13 (1): 137-48.
9. Annesley, C. 2005. Manual processes must be automated to cut cost of Sarbanes-Oxley audits, says Basda. Computer Weekly, October 25, 22.
10. Arens, A. A., R. J. Elder, and M. S. Beasley. 2003. Auditing and assurance services, an integrated approach. Upper Saddle River, NJ: Prentice Hall.
11. Bagranoff, N. A., and V. P. Vendrzyk. 2000. The changing role of IS audit among the big five US-based accounting firms. Information Systems and Control Journal 5: 33-7.
12. Bamber, E. M. 1983. Expert judgment in the audit team: A source reliability approach. Journal of Accounting Research 21 (2): 396-412.
13. Baron, R. M., and D. A. Kenney. 1986. The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology 51 (6): 1173-82.
14. Bédard, J., and M. T. H. Chi. 1993. Expertise in auditing. Auditing: A Journal of Practice & Theory 12 (Supplement): 21-45.
15. Bedard, J. C., L. Graham, and C. Jackson. 2005. Information systems risk and audit planning. International Journal of Auditing 9 (2): 147-63.
16. Bedard, J. C., T. J. Mock, and A. M. Wright. 1999. Evidential planning in auditing: A review of the empirical research. Journal of Accounting Literature 18: 96-142.
17. Bedard, J. C., and A. M. Wright. 1994. The functionality of decision heuristics: Reliance on prior year adjustments in evidential planning. Behavioral Research in Accounting 6 (Supplement): 62-89.
18. Biggs, S. F., W. F. Messier, Jr. and J. V. Hansen. 1987. A descriptive analysis of computer audit specialists' decision-making behavior in advanced computer environments. Auditing: A Journal of Practice & Theory 6 (2): 1-21.
19. Bonner, S. E. 1990. Experience effects in auditing: The role of task-specific knowledge. The Accounting Review 65 (1): 72-92.
20. Bonner, S. E., and B. Lewis. 1990. Determinants of auditor expertise. Journal of Accounting Research 28 (Supplement): 1-20.
21. Brazel, J. F., C. P. Agoglia, and R. C. Hatfield. 2004. Electronic vs. face-to-face review: The effects of alternative forms of review on auditors' performance. The Accounting Review 79 (4): 949-66.
22. Brown, P. R. 1983. Independent auditor judgment in the evaluation of internal audit functions. Journal of Accounting Research 21 (2): 444-55.
23. Bulkeley, W. M. 2006. Behind CA's woes: Holes in internal controls; pay scale meant to motivate led to double commissions and new turmoil for firm. Wall Street Journal, June 8, A3.
24. Cerullo, M. J., and V. Cerullo. 2000. The internal auditor's role in developing and implementing enterprise resource planning systems. Internal Auditing 15 (3): 25-34.
25. Chi, M., R. Glaser, and E. Rees. 1982. Expertise in problem solving. In Advances in the Psychology of Human Intelligence, ed. J. Steinberg, 7-75. Hillsdale, NJ: Erlbaum.
26. Curtis, M. B., and R. E. Viator. 2000. An investigation of multidimensional knowledge structure and computer auditor performance. Auditing: A Journal of Practice & Theory 19 (2): 83-103.
27. Ferguson, G. A., and Y. Takane. 1989. Statistical analysis in psychology and education, 6th ed. New York: McGraw-Hill.
28. Gardner, R. C. 2001. Psychological statistics using SPSS for Windows. Upper Saddle River, NJ: Prentice Hall.
29. Glover, S. M., D. F. Prawitt, and M. B. Romney. 1999. Implementing ERP. Internal Auditor 56(1): 40-7.
30. Hackenbrack, K., and W. R. Knechel. 1997. "Resource allocation decisions in audit engagements." Contemporary Accounting Research 14 (3): 481-99.
31. Helms, G. L. 1999. Top technology concerns for the attest, audit and assurance services functions. IS Audit and Control Journal (II): 46-8.
32. Hirst, D. E. 1994. Auditors' sensitivity to source reliability. Journal of Accounting Research 32(1): 113-26.
33. Houston, R. W. 1999. The effects of fee pressure and client risk on audit seniors' time budget decisions. Auditing: A Journal of Practice & Theory 18 (2): 70-86.
34. Hunton, J. E., A. M. Wright, and S. Wright. 2004. Are financial auditors overconfident in their ability to assess risks associated with enterprise resource planning systems? Journal of Information Systems 18 (2): 7-28.
35. Janvrin, J. D., J. Bierstaker, and D. J. Lowe. 2004. The impact of client information technology on audit procedures. Working paper, Iowa State University.
36. Joyce, E. J., and G. C. Biddle. 1981. Anchoring and adjustment in probabilistic inference in auditing. Journal of Accounting Research 19 (1): 120-45.
37. Kadous, K., and A. M. Magro. 2001. The effects of exposure to practice risk on tax professsionals'judgements and recommendations. Contemporary Accounting Research 18 (3): 451-76.
38. Kinney, W. R. 2001. Accounting scholarship: What is uniquely ours? The Accounting Review 76 (2): 275-84.
39. Libby, R., J. T. Artman, and J. J. Willingham. 1985. Process susceptibility, control risk, and audit planning. The Accounting Review 60 (2): 212-30.
40. Lilly, R. S. 1997. Client/server database security. IS Audit and Control Journal (VI): 50-1.
41. Low, K-Y. 2004. The effects of industry specialization on audit risk assessments and audit-planning decisions. The Accounting Review 79 (1): 201-19.
42. Maletta, M. J., and T. Kida. 1993. The effects of risk factors on auditors' configural information processing. The Accounting Review 68 (3): 681-91.
43. Marks, N. 2005. Maintaining control. Internal Auditor 62 (1): 36-38.
44. Messier, W. F., and L. A. Austen. 2000. Inherent risk and control risk assessments: Evidence on the effect of pervasive and specific risk factors. Auditing: A Journal of Practice & Theory 19 (2): 119-31.
45. Messier, W. F., A. Eilifsen, and L. A. Austen. 2004. Auditor detected misstatements and the effect of information technology. International Journal of Auditing 8 (3): 223-35.
46. Mock, T. J., and A. M. Wright. 1999. Are audit program plans risk-adjusted? Auditing: A Journal of Practice & Theory 18 (1): 55-74.
47. Monroe, G. S., and J. Ng. 2000. An examination of order effects in auditors' inherent risk assessments. Accounting and Finance 40 (2): 153-68.
48. Nunnally, J. D. 1978. Psychometric theory. New York: McGraw-Hill.
49. O'Donnell, E., V. Arnold, and S. G. Sutton. 2000. An analysis of the group dynamics surrounding internal control assessment in information systems audit and assurance domains. Journal of Information Systems 14 (Supplement): 97-116.
50. O'Keefe, T. B., D. A. Simunic, and M. T. Stein. 1994. The production of audit services: evidence from a major public accounting firm. Journal of Accounting Research 32 (2): 241-61.
51. O'Leary, D. E. 2000. Enterprise resource planning systems: Systems, life cycle, electronic-commerce, and risk. Cambridge: Cambridge University Press.
52. Peecher, M. E., and I. Solomon. 2001. Theory and experimentation in studies of audit judgments and decisions: Avoiding common research traps. International Journal of Auditing 5 (3): 193-203.
53. Public Company Accounting Oversight Board (PCAOB). 2004. Auditing Standard No. 2: An audit of internal control over financial reporting in conjunction with an audit of financial statements. Washington, DC: PCAOB.
54. Public Oversight Board (POB). 2000. Panel on Audit Effectiveness: Report and recommendations. Stamford, CT: American Institute of Certified Public Accountants, 2000.
55. Rebele, J. E., J. A. Heintz, and G. E. Briden. 1988. Independent auditor sensitivity to evidence reliability. Auditing: A Journal of Practice & Theory 8 (1): 43-52.
56. Schneider, A. 1984. Modeling external auditors' evaluations of internal auditing. Journal of Accounting Research 22 (2): 657-78.
57. Shelton, S. W. 1999. The effect of experience on the use of irrelevant evidence in auditor judgment. The Accounting Review 74 (2): 217-24.
58. Soh, C., S. Kien, and J. Tay-Yap. 2000. Cultural fits and misfits: Is ERP a universal solution? Communications of the ACM 43 (4): 47-51.
59. Solomon, D. 2005. Accounting rule exposes problems but draws complaints about costs. Wall Street Journal, March 2, A1 and A12.
60. Turner, T. 1999. Implementing and enhancing data security in a PeopleSoft environment. IS Audit and Control Journal (III): 51-2.
61. Vendrzyk, V. P., and N. A. Bagranoff. 2003. The evolving role of IS audit: A field study comparing the perceptions of IS and financial auditors. Advances in Accounting 20: 141-63.
62. Wah, L. 2000. Give ERP a chance. Management Review 89 (3): 20-4.
63. Weil, J. 2004. Behind wave of corporate fraud: A change in how auditors work. Wall Street Journal, March 25, A1 and A14.
64. Wright, A. M. 1988. The impact of prior working papers on auditor evidential planning judgments. Accounting, Organizations and Society 13 (6): 595-606.
65. Wright, A. M., and J. C. Bedard. 2000. Decision processes in audit evidential planning: A multistage investigation. Auditing: A Journal of Practice & Theory 19 (1): 123-43.
66. Wright, S., and A. M. Wright. 2002. Information system assurance for enterprise resource planning systems: Implementation and unique risk considerations. Journal of Information Systems 16 (Supplement): 99-113.