The impact of cultural environment on entry-level auditors’ abilities to perform analytical procedures

Hughes, Susan B.; Sander, James F.; Higgs, Scott D.; Cullinan, Charles P.

doi:10.1016/j.intaccaudtax.2008.12.004

Cited by 40 publications

(32 citation statements)

References 35 publications

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“…This study uses accounting students as the participants rather than auditors. Although we have provided strong arguments for the use of final-year accounting students as proxies for entrylevel auditors (Chan & Leung 2006;Farag & Elias 2012;Fleming et al 2010;Geiger & Ogilby 2000;Hughes et al 2009;Kwock et al 2016;Ying & Patel 2016), they have not been exposed to real audit practices. Hence, the participants possibly use their own perceptions to interpret the case given in the experiment.…”

Section: Resultsmentioning

confidence: 93%

“…Consistent with prior studies (such as Chan & Leung 2006;Farag & Elias 2012;Fleming et al 2010;Geiger & Ogilby 2000;Hughes et al 2009;Kwock et al 2016;Ying & Patel 2016), this study uses final-year accounting students in both undergraduate and professional programs as proxies for entry-level auditors. Final-year students are used because they have not been influenced by, or directly exposed to, the organizational cultures of audit firms.…”

Section: Introductionmentioning

confidence: 97%

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Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Fatmawati

Mustikarini

Fransiska

2018

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This study examines the extent to which enrollment in accounting programs influences students' skepticism levels. We compare the skepticism scores between final-year accounting students in undergraduate and professional programs. This study also investigates the impacts of trait skepticism and situational skepticism on the participants' initial judgment of fraud or errors. Situational skepticism in this study is represented by audit experience from previous years. This study employs an experimental design of 2x3 between-subjects, where trait skepticism is divided into higher and lower levels, and the audit experience from previous years is manipulated into positive, negative and neutral. The participants in this study are 227 accounting students from both undergraduate and professional programs. The results of this study show that accounting students in the professional program are likely to exhibit higher levels of trait skepticism compared to their counterparts in the undergraduate program. The results also indicate that participants make an audit judgment based mainly on their prior experience with the client, not on their trait skepticism. This propensity is more salient particularly in the case of the less-skeptical participants. In sum, the higher that the formal education of a participant is, then the higher is his/her trait skepticism, and thus he/she is able to retain his/her skeptical judgments regardless of his/her prior experience with the client. ABSTRAK Makalah ini mengkaji tahap sejauh mana pendaftaran dalam program perakaunan mempengaruhi tahap skeptisisme pelajar. Kami membandingkan skor skeptisisme di antara pelajar perakaunan akhir tahun dalam program sarjana dan profesional. Kajian ini juga menyelidik kesan skeptisisme bawaan dan skeptisisme keadaan terhadap penilaian awal peserta terhadap penipuan atau ralat. Skeptisisme keadaan dalam kajian ini diwakili oleh pengalaman audit dari tahuntahun sebelumnya. Kajian ini menggunakan reka bentuk eksperimen 2x3 antara subjek, di mana skeptisisme bawaan dibahagikan kepada tahap yang tinggi dan rendah, dan pengalaman audit dari tahun-tahun sebelumnya dimanipulasi menjadi positif, negatif dan neutral. Peserta dalam kajian ini adalah terdiri daripada 227 pelajar perakaunan dari program sarjana dan profesional. Hasil kajian ini menunjukkan bahawa pelajar perakaunan dalam program profesional cenderung menunjukkan tahap skeptisisme bawaan yang lebih tinggi berbanding rakan sejawat mereka dalam program sarjana. Hasil kajian juga menunjukkan bahawa para peserta membuat penilaian audit berdasarkan pengalaman terdahulu mereka dengan klien, dan bukan berdasarkan skeptisisme bawaan mereka. Kecenderungan ini lebih menonjol, terutamanya untuk kes peserta yang kurang skeptikal. Kesimpulannya, semakin tinggi tahap pendidikan formal peserta, semakin tinggi skeptisisme bawaannya, dan dengan itu dapat mempertahankan penilaiannya skeptikalnya tanpa menghiraukan pengalaman terdahulunya dengan klien.Kata kunci: Pendidikan dan latihan; program profesion perakaunan; skeptisis...

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Section: Resultsmentioning

confidence: 93%

Section: Introductionmentioning

confidence: 97%

Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Fatmawati

Mustikarini

Fransiska

2018

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“…The literature reports on a number of cross-cultural studies in auditing, where cultural dimensions -as conceptualized by Hofstede et al (2010)-have served as the basis. These studies often report significant variations in practice with respect to the cultural context (Abdolmohammadi & Sarens, 2011;Hughes, Sander, Higgs, & Cullinan, 2009). The empirical work in [S35] examines the influence of three cultural dimensions of the Hofstede's framework, namely power distance, uncertainty avoidance, and individualism, on the quality of internal audits (Alzeban, 2015).…”

Section: Iaef20 Cultural Dimensionsmentioning

confidence: 99%

Internal audit effectiveness: operationalization and influencing factors

Türetken

Jethefer

Özkan

2019

MAJ

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Purpose The purpose of this paper is to introduce a framework that presents how internal audit effectiveness can be operationalized and what factors are available to influence the effectiveness. Internal audits have become one of the key practices for organizations to control the adherence of their processes to standard procedures and regulations. The benefits of conducting internal audits are well acknowledged in the literature. However, it is difficult for organizations to assess the effectiveness of internal audits and to understand the factors that influence audit effectiveness. Design/methodology/approach A systematic literature review was conducted to identify relevant publications and collect and synthesize evidence on the operationalization of internal audit effectiveness and the factors that potentially influence the effectiveness of internal audits. Findings A thorough analysis of the relevant studies resulted in a comprehensive list of indicators used for the operationalization of audit effectiveness and a list of potentially influencing factors. The results of the systematic review are synthesized into a framework. Research limitations/implications The researchers should consider this study as a comprehensive source that offers pointers on the factors investigated in the literature and a basis for future research in this field to address the gaps that are identified. Practical implications Awareness about how the effectiveness of internal audits can be measured, and the factors that can potentially influence this effectiveness can help organizations to understand their current performance and ultimately improve it in the future. Originality/value The contributions of this study will help in better understanding the state of the research on internal audit effectiveness, including the influential factors, and gaps and opportunities for future research.

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“…The study determined, however, that the efficiency gains that auditors hoped to achieve through the use of analytical procedures rather than tests of detail were achieved only partially at the time of the study. Hughes, Sander, Higgs, and Cullinan (2009) conducted an experiment to determine the effect of culture on entry-level auditors' use of analytical procedures. Using accountancy students in Mexico and the U.S. as proxies for entry-level auditors, they analyzed whether differences in the cultural dimensions of power distance, uncertainty avoidance, and individualism affected expectations of current year balances and assessment of risk of material misstatement.…”

Section: Auditingmentioning

confidence: 99%