Activity

2020 ◽  
pp. 1-30
Keyword(s):  
Planning Process ◽  
Business Practices ◽  
Audit Risk ◽  
System Perspective ◽  
Audit Planning ◽  
Assessment Tasks ◽  
Standards And Guidelines ◽  
Audit Project ◽  
It Audit

To fulfill audit planner responsibilities, the information technology (IT) auditor must determine examinable units using a selection method for engagements. Through synthesis of relevant audit standards and guidelines as well as professional experience, Chapter 1 presents crucial inputs to the IT audit planning process to organize a comprehensive assessment of an IT audit area. Chapter 1 discusses how to obtain an understanding of assurance objectives, enterprise objectives, and business practices for an IT audit project. Moreover, Chapter 1 discusses IT audit materiality, IT audit risk assessment tasks, and presents foundational control appraisal tasks from a system perspective.

Activity

2020 ◽  
pp. 31-59
Keyword(s):  
Planning Process ◽  
Professional Experience ◽  
Audit Planning ◽  
Standards And Guidelines ◽  
It Audit ◽  
Audit Standards

When addressing IT audit planner responsibilities, the in-charge IT auditor must inscribe and communicate an engagement's objectives, ambit, and examinable units based on an obtained audit area understanding. Through synthesizing relevant audit standards and guidelines as well as professional experience, Chapter 2 presents crucial outputs for completing the IT audit planning process. Chapter 2 discusses issues related to planned compliance and substantive testing and then provides primary documentation requirements of an operational IT audit plan. Chapter 2 also presents IT audit planner tasks when conferencing with the engagement auditee(s) and associated communication distribution.

The Influence of Potentially Fraudulent Reports on Audit Risk Assessment and Planning

2001 ◽  
Vol 76 (1) ◽  
pp. 59-80 ◽  
Author(s):  
D. Paul Newman ◽  
Evelyn Patterson ◽  
Reed Smith
Keyword(s):  
Financial Reporting ◽  
Planning Process ◽  
Dynamic Interaction ◽  
Fraudulent Financial Reporting ◽  
Expected Payoff ◽  
Audit Risk ◽  
Audit Planning ◽  
Inherent Risk ◽  
Risk Detection ◽  
Reported Earnings

We consider how auditors assess the risk of fraudulent financial reporting and plan their audit where a possibly fraudulent auditee anticipates the assessment and planning process. The auditor uses the auditee's (possibly fraudulent) earnings report to revise his beliefs about the likelihood of fraud when formulating an audit plan. We find that as underlying earnings increase, a fraudulent auditee increases reported earnings. In turn, as the auditee's reported earnings increase, the auditor increases audit effort. We also find that the auditee (who knows the auditor will use the report for audit planning) selects reports that increase his own expected payoff, relative to reports he would select if the auditor did not observe the report before finalizing the audit plan. By contrast, the auditor is no better off using the auditee's report for audit planning. Inherent risk, detection risk, and overall audit risk can increase when the auditor uses the auditee's report. Thus, because of the dynamic interaction between the auditor and auditee, procedures that aid in assessing audit risk may not reduce that risk or result in more efficient audits.

An Examination of Memory Conjunction Errors in Multiple Client Audit Environments

2003 ◽  
Vol 22 (1) ◽  
pp. 127-141 ◽  
Author(s):  
Deborah L. Lindberg ◽  
Mario M. Maletta
Keyword(s):  
Planning Process ◽  
Complex Function ◽  
Audit Process ◽  
Simultaneous Exposure ◽  
Audit Risk ◽  
Reconstruction Process ◽  
Audit Planning ◽  
Conjunction Errors ◽  
Audit Evidence ◽  
Memory Conjunction Errors

This study is the first in an auditing context to examine auditor susceptibility to memory conjunction errors, a type of systematic memory error that is related to the memory reconstruction process. Conjunction errors occur when memory traces associated with one event are incorrectly attributed to another event during memory reconstruction. Auditors may be particularly susceptible to memory conjunction errors due to their simultaneous exposure to multiple audit clients and their use of standardized audit forms and checklists to capture information. Unrecognized, such errors could adversely affect the efficiency and/or effectiveness of the financial statement audit process. We conducted an experiment that employed practicing audit professionals addressing multiple audit clients. Consistent with our hypotheses, the results indicate that memory conjunction errors in an audit environment are a complex function of (1) the consistency between the audit evidence recalled from an unrelated audit and the characteristics of the client that is the target of the memory reconstruction, (2) the consistency between this recalled audit evidence and the characteristics of the client to which the evidence is actually associated, and (3) the level of risk present in the audit environment that is the target of the memory reconstruction. While research has shown that audit risk factors can generally serve to decrease some types of auditors' memory recognition errors in single client situations (e.g., Sprinkle and Tubbs 1998), our results show that increases in audit risk can actually exacerbate memory errors involving multiple audit clients and memory conjunction errors. Finally, the findings of the study suggest that auditors are not only susceptible to memory conjunction errors, but also that such errors may play a significant role in elements of the audit-planning process related to auditors' likelihood of material error assessments.

Information Technology Audit Quality: An Investigation of the Impact of Individual and Organizational Factors

2020 ◽  
pp. 0000-0000
Author(s):  
M. Dale Stoel ◽  
Doug Havelka
Keyword(s):  
Information Technology ◽  
Audit Quality ◽  
Organizational Factors ◽  
Quality Factors ◽  
Factors Affecting ◽  
News Stories ◽  
Audit Planning ◽  
Additional Education ◽  
It Audit ◽  
The Impact

Major news stories demonstrate the importance and vulnerability of information technology (IT); highlighting the need to understand how to reduce risk. This study investigates the key factors affecting IT audit quality (ITAQ), focusing on individual auditor and organizational factors. We utilize multiple approaches to understand professionals' general perceptions of ITAQ and results from specific audits. Our results suggest that the importance of IT audit quality factors differs between participants' general perceptions and those reported for specific IT audit experiences. Participants' general perceptions indicated that the most important factors for ITAQ were auditors' knowledge and skills, specifically IT and business process knowledge. By comparison, actual audit experiences suggest organizational factors as more important, specifically audit planning and the auditor-client relationship. We believe these differences between general perceptions and reported results suggest a potential opportunity to improve ITAQ via additional education and upfront development of the audit teams and processes.

Life

2020 ◽  
pp. 8-32
Author(s):  
Benjamin Wiggins
Keyword(s):  
Public Relations ◽  
Insurance Industry ◽  
Theoretical Work ◽  
Business Practices ◽  
Insurance Company ◽  
Company Policy ◽  
History Of ◽  
A Company ◽  
History Of Race

Chapter 1 focuses on the early history of race-based insurance. When the Newark-based Prudential Insurance Company of America incorporated in 1875, it revolutionized the American insurance industry by offering policies to the working class for an affordable three cents per week. What made the Prudential doubly unique was that the company insured not simply industrial laborers, but also African American laborers. The company was not in the progressive vanguard, though. Rather, the Northern upstart, in contrast to its Southern competitors, simply had not thought to craft a company policy to explicitly ban African Americans from purchasing life insurance. Just five years after becoming the first insurer to cover black lives, the Prudential began to charge differential, race-based premiums and commenced a public relations effort to defend its discriminatory practices. This foundational chapter traces how the theoretical work of scientific racism became embedded in the business practices of American insurers.

Visualizing “Everything under the Sun”

2020 ◽  
pp. 26-81
Author(s):  
Florian Hoof
Keyword(s):  
Social Theory ◽  
Systematic Approach ◽  
Boundary Objects ◽  
Media History ◽  
Media Theory ◽  
Business Practices ◽  
The Sun ◽  
Intuitive Thinking ◽  
Epistemological Perspective

Chapter 1 gives a detailed introduction to the book’s historical-epistemological perspective, a combination of approaches from business and media history, media archeology, German media theory, and social theory. First, it establishes a systematic approach to understand visual consulting knowledge as media boundary objects and as part of a historically emergent graphic media network. It looks at the genealogy of the static, kinetic, and calculative media devices that form the graphic media network. Second, it traces the popularization of visualization methods that were originally developed in disciplines such as statistics, engineering, physiology, and macroeconomics. It shows the utopian potential that was attributed to visualization devices, which were conceived as new modes of intuitive thinking. It describes how management in industrial and commercial firms increasingly made use of these graphic, photographic, and filmic techniques. The chapter shows how this connection leads to fundamental changes in business practices, which are characterized as a form of “visual management.”

scholarly journals Pengaruh Pengalaman Auditor, Time Budget Pressure dan Ukuran Kantor Akuntan Publik Terhadap Audit Report LAG Pada Auditor Kantor Akuntan Publik Di Kota Surabaya

2020 ◽  
Vol 11 (2) ◽  
pp. 80
Author(s):  
Dewi Sutjahyani
Keyword(s):  
Audit Quality ◽  
Planning Process ◽  
Time Budget ◽  
Audit Report ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Planning ◽  
Public Accounting Firms ◽  
Inspection Tasks ◽  
Time Budget Pressure

The job of the auditor is to provide useful information, therefore when the audited report is delayed it will reduce the use value of the financial statements presented. Therefore, it is important to identify and have a deeper look at several factors related to the occurrence of audit report lag. Thus, it is necessary to study whether these factors significantly influence the audit report lag. This is important because the audit report lag phenomenon can reduce client interest and affect the reputation of auditors and public accounting firms where auditors work. Hypothesis 1 in this study is rejected, this means that the experience of auditors does not significantly affect the Audit Report Tag. work and the number of inspection tasks. The experience variable does not have a significant effect because audit quality is not determined by the length of work and the number of audit tasks. Hypothesis 2, namely that time budget pressure has an effect on audit report lag, is rejected. Time budget pressure is vital in the process of completing an audit report. In this case the time budget pressure does not have a significant effect because the budget pressure is determined when planning to determine the audit task but the implementation of the audit can be different influenced by the existing situation. For example during a pandemic, uncontrollable situations lead to leeway in the completion of audited reports. So that the existing time budget pressure must be adjusted. The hypothesis in this study is accepted, this is because the size of KAP basically determines the level of efficiency and effectiveness of each auditor's task. In medium and large KAPs, there is usually a structured system and maturity from the audit planning process to the audit. This is because large public accounting firms usually try to maintain quality and reputation to keep their clients interested

scholarly journals Planning for Substantive Testing at the Assertion Level: A Training Activity and Mini Case

2020 ◽  
Author(s):  
Janice E. Rummell ◽  
Andrea B. Weickgenannt
Keyword(s):  
Planning Process ◽  
Critical Role ◽  
Financial Statement ◽  
Student Survey ◽  
Training Activity ◽  
Audit Planning ◽  
Financial Statement Audit ◽  
Students First ◽  
Survey Responses

This two-part educational resource was developed to enhance students’ understanding of a key aspect of the audit guidance concerning financial statement audit planning for substantive testing at the assertion level. Assuming the role of audit associates at a CPA firm, students first engage in a training activity in which they deconstruct substantive audit tasks into significant financial statement accounts, management assertions, and types of audit procedures related to each task. Then students consider inherent risk factors for a client engagement in a mini case and apply relevant accounts, management assertions, and detailed substantive audit procedures. These resources are easy to implement and require little advanced preparation, yet they provide a rich instructional resource for either new or experienced auditing faculty. Assessment results and student survey responses reveal the effectiveness of these resources in promoting students’ comprehension of the critical role of management assertions in the audit planning process.

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