Assessing the performance of analytical procedures: a best case scenario
Article Abstract:
Auditors are seeking more effective and efficient audit procedures due to client demands that auditors take more responsibility for misstatements and the decline in audit fee levels. Five sample companies with revenues exhibiting a great variety of time-series behavior were analyzed to research the effects of eight accounting errors in five common analytical procedures to study the effectiveness of audit analytical procedures by seeding simulated errors in actual accounting data. Research reveals that the lowest error rates were in those instances where direct recomputation of interest and depreciation errors was the primary substantive test. Research results indicate that Statement of Accounting Standard No.56's assertion that balance sheet accounts are less predictable than income statement accounts is wrong, though evidence is limited.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
A note on participation in budgeting and locus of control
Article Abstract:
The participative relationship between superiors and their subordinates is examined. The findings of a laboratory experiment indicate that the personality variable, the locus of control, may affect the extent to which a supervisor will accept the input of subordinates. Results support the hypothesis that internal managers are more willing than external managers to allow subordinate participation.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The information content of annual reports: a price and trading response analysis. Understanding accounting changes in an efficient market - a comment, replication, and re-interpretation
- Abstracts: An evaluation of AICPA tests for predicting the performance of accounting majors. The information in governmental annual reports: a contemporaneous price reaction approach
- Abstracts: The effectiveness of statistical analytical review as a substantive auditing procedure: a simulation analysis Accounting internships and subsequent academic performance: an empirical study
- Abstracts: On the efficiency of internal and external corporate control mechanisms. Organizational economics: an impending revolution in organization theory?
- Abstracts: The informational role of upstairs and downstairs trading. Portfolio insurance in complete markets: a note. An analysis of the implications for stock and futures price volatility of program trading and dynamic hedging strategies