Auditing functions for internal control systems with interdependent documents and channels

Article Abstract:

Research conducted by R.A. Grimlund in 1982 illustrated how a model could be developed for the accumulation of errors on a single document as it passed through various stages of processing within an internal control environment. Grimlund's findings are refined to account for errors in one document that automatically cause errors in a related document. The dependencies introduced to Grimlund's model account for errors occurring when two documents are merged during internal control checking to form a single document, and for errors occurring on either of two documents being processed in parallel by an internal control system. The results of this research generalize Grimlund's findings.

Services, Accountants, Business consultants, Management consultants, Management audit, Management audits

---

Auditor reporting decisions involving accounting principle changes: some evidence on materiality thresholds

Article Abstract:

Auditors' interpretation of the materiality concept is examined using audit reports of companies that have changed accounting principles. Accounting Trends and Techniques 1980 was used to determine the most frequent changes including foreign currency translations, LIFO adoptions, and capitalization of interest. Results indicate that: consistency modifications are issued at much smaller effects on operating income than gas been anticipated in previous research; discretionary changes are more frequently modified than for the two non-discretionary changes; and non-Big Eight firms are more likely to modify their reports than are Big Eight firms.

Reports

---

A simulation analysis of the power characteristics of some popular estimators under different risk and materiality levels

Article Abstract:

Dollar unit sampling (DUS) and stratified means per unit (STMPU) estimation procedures are examined to determine their efficiency at extreme risk levels. The power curve characteristics of STMPU and DUS are measured at a wide range of error conditions. Four cases consisting of 20 environments were simulated 600 randomly drawn samples. It was found that STMPU and DUS are reliable at extreme risk levels and that DUS is more appropriate for extensive audit use than previously thought.

Similar abstracts:

• Abstracts: Corporate linkages and organizational environment: a test of the resource dependence model. Market position, resource profile, and governance: linking Porter and Williamson in the context of international courier and small package services in Japan
• Abstracts: Hedging risks without derivatives. Document and check fraud soaring
• Abstracts: Auditors' Liability - Recent Developments. Materiality in Practice. Bridging the Gap
• Abstracts: Purses and portfolios. The center of America's heartland: rich with industry, agriculture, and ad savvy
• Abstracts: Even personal decisions involve comparative costs. Try to understand the forces of motivation. Survival strategy: keeps business alive and well

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.