Dickinson Technologies, Inc.: Assessing Control Environment and Fraud Risk

Agoglia, Christopher P.; Brown, Kevin F.; Hanno, Dennis M.

doi:10.2308/iace.2003.18.1.71

Cited by 9 publications

(3 citation statements)

References 2 publications

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“…1). First, both groups of students were given a traditional lecture 7 The case we used was Dickinson Technologies (Agoglia, Brown, & Hanno, 2003). We chose this case because the answers were not ''black and white,'' and the students have to carefully scrutinize the materials before making a risk assessment based on professional judgment.…”

Section: Between-subjects Assessmentmentioning

confidence: 99%

The effectiveness of interactive professional learning experiences as a pedagogical tool: Evidence from an audit setting

Sanchez

Agoglia

Brown

2012

Journal of Accounting Education

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Section: Between-subjects Assessmentmentioning

confidence: 99%

The effectiveness of interactive professional learning experiences as a pedagogical tool: Evidence from an audit setting

Sanchez

Agoglia

Brown

2012

Journal of Accounting Education

Self Cite

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“…Some studies have examined how audit evidence of the control environment impacts audit judgements (e.g., Agoglia et al 2003;Bernardi 1994;Cohen and Hanno;Schmidt 2014). For example, some studies (Cohen and Hanno, 2000) have shown that two important elements of the control environment (management control philosophy and governance structure) impact pre-planning and planning judgements and can prove useful in developing work papers and risk assessment models.…”

Section: Introductionmentioning

confidence: 99%

The relationship between auditors’ human capital attributes and the assessment of the control environment

Lamboglia

Mancini

2020

J Manag Gov

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The International Standards on Auditing (ISA) consider the understanding of the control environment as a basic phase of an auditor’s assessment of internal control. This comprehension influences the nature, timing, extent and, ultimately, the quality of the procedures managed by auditors. Several studies have investigated the determinants and implications of control environment assessment, internal control evaluation, and audit quality. However, very few studies have adopted a human capital perspective and matched the number and type of the control environment elements considered during control environment evaluation with auditors’ human capital attributes. Starting from these considerations, the paper examines the relationship between auditors’ human capital attributes and the assessment of the control environment. Based on a survey of 100 Italian external auditors, this study reveals that auditors perceive “Communication and enforcement of integrity and ethical values” as a relevant element in undertaking control environment assessments. Moreover, the findings indicate that the type of audit firm (Big Four), the regional context (Northern Italy), and the auditor’s degree specialization (accounting, finance and auditing) influence the control environment assessment. This study contributes to the literature by consolidating the use of human capital theory in the auditing domain and presenting new results that help clarify the relationship between human capital attributes and control environment evaluation. We have identified the human capital attributes of auditors that match a control environment evaluation based on all seven elements indicated by ISA 315.

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“…experiment began with brief instructions asking participants to assume the role of the auditor involved in the preplanning stage of an integrated audit of a hypothetical client. They then read Part A of the experimental materials that contained a common set of background information adapted from prior research to reflect the current economic environment (with permissions fromAgoglia, Brown, & Hanno, 2003;McCracken et al, 2011). The background information included a brief introduction of the client management team, board of directors and audit committee.…”

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confidence: 99%

An examination of auditor hypothesis testing strategies in ‘tone at the top’ evaluations: Evidence of diagnostic knowledge structures

Schmidt

2024

Int J Auditing

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This study examines the tests auditors design to assess a client's ‘tone at the top’. By exploiting conceptual differences in the constructs of ethicality and competence, the study investigates auditor knowledge structures by disentangling auditor hypothesis testing strategies. The results of an experiment document that auditors design tests to yield evidence of unethical and competent, rather than ethical and incompetent, client management behaviour. This overall pattern of results, and in particular auditors' focus on seeking evidence of client management competence, is consistent with a diagnostic hypothesis testing strategy and is not consistent with a conservative testing strategy. Collectively, these results provide insights into how auditors' ‘tone at the top’ knowledge is organized and used.

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Dickinson Technologies, Inc.: Assessing Control Environment and Fraud Risk

Cited by 9 publications

References 2 publications

The effectiveness of interactive professional learning experiences as a pedagogical tool: Evidence from an audit setting

The effectiveness of interactive professional learning experiences as a pedagogical tool: Evidence from an audit setting

The relationship between auditors’ human capital attributes and the assessment of the control environment

An examination of auditor hypothesis testing strategies in ‘tone at the top’ evaluations: Evidence of diagnostic knowledge structures

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