Understanding the structure of audit workpaper error knowledge and its relationship with workpaper review performance

Harding, Noël

doi:10.1111/j.1467-629x.2010.00342.x

Cited by 4 publications

(4 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It is widely reported that individuals rely on their knowledge and experiences to interpret the environmental stimuli they encounter in their decision making process (Harding, 2010). In a review of the literature, Maheswaran and Pinder (2010) conclude that experience and education are the two important elements that substantially affect Audit expectation gap the quality of decisions of finance managers.…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

“…Individual factors, such as knowledge and experience, shape human judgment and attitude (Bolisani and Scarso, 1999), and influence human decision making (Collan and Lainema, 2005; Epstein and Geiger, 1994; Humphrey et al , 1992; Mansori, 2012). It is widely reported that individuals rely on their knowledge and experiences to interpret the environmental stimuli they encounter in their decision making process (Harding, 2010). In a review of the literature, Maheswaran and Pinder (2010) conclude that experience and education are the two important elements that substantially affect the quality of decisions of finance managers.…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Antecedents and consequences of audit expectation gap

Noghondari

Foong

2013

Managerial Auditing Journal

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This study aims to investigate the effects of individual knowledge/experience on the audit expectation gap of loan officers in Malaysia and the subsequent effect of the audit expectation gap on their loan decision quality. In addition, the mediation role of the audit expectation gap is examined. Design/methodology/approach -Copies of a structured questionnaire were randomly distributed to three hundred and twenty loan officers of the top four commercial banks in Malaysia. A total of 212 completed questionnaires were analysed using structural equation modelling. Findings -The findings indicate that the knowledge/experience factors could significantly mitigate the audit expectation gap. More importantly, the audit expectation gap is found to adversely affect the loan decision quality. The mediating role of the audit expectation gap is also supported.Research limitations/implications -The findings of this study may not be generalizable to other economic, cultural and political settings. Practical implications -Banks may narrow their loan officers' audit expectation gap and hence, their non-performing loans through selective recruitment or appropriate knowledge/skill enhancement in-house training programmes. Originality/value -This study provides the needed empirical evidence of the adverse effect of audit expectation gap on the loan decision quality of bank officers in Malaysia. Unlike the 2009 findings of Noghondari and Foong, which was based on an Islamic banking context in Iran, this study, which was based on the conventional banking context, found that accounting-related and job-related work experience of bank officers had significantly mitigated the audit expectation gap. The findings have important implications on the recruitment and training of loan officers by banks.

show abstract

Section: Research Model and Hypothesesmentioning

confidence: 99%

Section: Research Model and Hypothesesmentioning

confidence: 99%

Antecedents and consequences of audit expectation gap

Noghondari

Foong

2013

Managerial Auditing Journal

View full text Add to dashboard Cite

show abstract

“…Standards also require that all audit documentation be reviewed by at least one other audit team member (PCAOB 2016, AS 1201. The initial creation of audit documentation (Payne and Ramsay, 2008;Shankar and Tan, 2006;Andiola et al, 2018), as well as the review process (Fargher et al, 2005;Lambert and Agoglia, 2011;Brazel et al 2004;Frank and Hoffman, 2015;Agoglia et al 2010;Hun-Tong Tan and Trotman, 2003;Rosman et al, 2007;Payne et al, 2010;Harding, 2010;Bamber and Ramsay, 2000), are critical in meeting audit standards and completing a quality audit. In the case of failed audits, the finalized audit documentation is the key evidence in auditor negligence trials (Backof, 2015).…”

Section: The Accounting Review Processmentioning

confidence: 99%

Adaptive Comparative Judgment and Psychological Safety in Accounting Education

Bartholomew

Jones

Hawkins

et al. 2021

JET

View full text Add to dashboard Cite

Traditional Accounting curricula include instruction on the preparation of audit documentation, however, experiential instruction for students on the process of review-both as a reviewer and reviewee-is often scarce or missing. This study investigated a classroom intervention that engaged undergraduate students in peer-review activities to gauge how peer review and feedback impacted student performance and their perceptions of being able to engage in interpersonal risks. Using a case-method approach, students developed audit workpapers that were later peer-reviewed through a digital system utilizing adaptive comparative judgment (ACJ). Students’ achievement scores were collected, and students also completed a pre/post survey on psychological safety. Our results indicate that student psychological safety increased over the course of the semester; however, the peer review process through ACJ did not significantly improve student performance within the class. The students responded positively to the intervention as an engaging learning process and effective in teaching real-world skills. Thus, this intervention provides an example of how peer review activities could enhance the learning experience for students.

show abstract

“…Probably, the nature of the allowance for doubtful accounts has led scholars to address this topic in several studies. In addition to early studies on the estimation method (Cyert et al, 1962;Schroderheim, 1964;Van Kuelen et al, 1981;Grimshaw and Alexander, 2011), the allowance for doubtful accounts has also been taken into consideration when examining a number of issues, such as the audit workpaper review process (Harding, 2010;Reimers and Fennema, 1999;Shankar and Tan, 2006), the effects of audit partner rotation among US publicly listed firms (Laurion et al, 2017), the responsiveness of audit program plans to client risks (Mock and Wright, 1999) and the effects of fraud risk assessments on auditors' evaluation of evidence and judgment (Rose and Rose, 2003). Furthermore, the allowance for doubtful accounts has been used in case studies for auditing courses at undergraduate and graduate levels (Andiola et al, 2018).…”

Section: Research Question and Backgroundmentioning

confidence: 99%

Micro Data analytics: a test for analytical procedures

Santosuosso

2021

MEDAR

View full text Add to dashboard Cite

Purpose Despite the potential of Big Data analytics, the analysis of Micro Data represents the main way of forecasting the expected values of recorded amounts and/or ratios for small auditing firms and certified public accountants dealing with analytical procedures. This study aims to examine how effective Micro Data analytics are by testing the forecast accuracy of the ratio of the allowance for doubtful accounts to the trade accounts receivable and the natural logarithm of the net sales of goods and services, the first exposed to a greater uncertainty than the second. Design/methodology/approach Micro Data are low in volume, variety, velocity and variability, but high in veracity. Given the over-fitting problems affecting Micro Data analytics, the in-sample and out-of-sample forecasts were made for both tests. Multiple regression and neural network models were performed using a sample of 35 Italian industrial listed companies. Findings The accuracy level of the forecasting models was found in terms of mean absolute percentage error and other accuracy measures. The neural network model provided more accurate forecasts than multiple regression in both tests, showing a higher accuracy level for the amounts exposed to less uncertainty. Moreover, no generalized conclusions on predictors included in the models could be drawn. Practical implications The examination of forecast accuracy helps auditors to evaluate whether analytical procedures can be successfully applied to detect misstatements when Micro Data are used and which model gives the most accurate forecasts. Originality/value This is the first study to measure the forecast accuracy of the multiple regression and neural network models performed using a Micro Data set. Forecast accuracy is crucial for evaluating the effectiveness of analytical procedures.

show abstract

Understanding the structure of audit workpaper error knowledge and its relationship with workpaper review performance

Cited by 4 publications

References 34 publications

Antecedents and consequences of audit expectation gap

Antecedents and consequences of audit expectation gap

Adaptive Comparative Judgment and Psychological Safety in Accounting Education

Micro Data analytics: a test for analytical procedures

Contact Info

Product

Resources

About