The effects of presentation format on the effectiveness and efficiency of auditors' analytical review judgments

Article Abstract:

Modern audit practice has focused increasing attention on the use of analytical review procedures to improve the effectiveness and efficiency of audits. To assist in this endeavor, one branch of analytical review research has investigated the judgment processes that auditors' use in analytical review and the development of decision aids to improve these processes. Several recent papers have considered how alternative presentations of financial and operating data, specifically graphs versus tables, may affect the effectiveness of auditors' analytical review judgments. However, the results have been mixed. This study investigated the expectation that there would be effectiveness and efficiency performance advantages for auditors receiving graphically presented data over those receiving tabular presented data in an analytical review setting. This paper reports on the results of an experiment that examined the impact of graphs versus tables on the effectiveness of sales account balance prediction, confidence in this prediction and the setting of a noninvestigation region, and the relative time efficiency with which these tasks were compeleted, for an analytical review of sales for a retailing client. The study found mixed results for the accuracy of the sales account balance predictions of the graphical and tabular treatment groups, with no difference found when a regression model estimate of the 'correct' prediction was used and greater accuracy for the graphical group when the actual audited sales account balance was used as the accuracy benchmark. No significant differences between treatment groups was found for their confidence in their sales account balance predictions and the width of the noninvestigation regions set. However, a significant time advantage was found for the graphical group. These findings suggest the there may a useful role for the use of graphs as decision aids in income statement related analytical review procedures in improving audit efficiency without sacrificing audit effectiveness. (Reprinted by permission of the publisher.)

Research, Auditing, Auditors

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Teaching innovative accounting topics: student reaction to a course in social accounting

Article Abstract:

Accounting students experience degree programs with a fairly 'traditional' range of topics that are taught with an emphasis on technique and learning the 'status quo'. To the extent that a topic may challenge this pattern by emphasizing new concepts, questioning existing concepts, being more concerned with what accounting 'might be' rather than current practice, or some combination of these, some topics may be considered 'innovative' additions to the curriculum. Social accounting is an innovative accounting topic that has attracted considerable attention in the literature. This paper reports on an implementation dilemma encountered in a course on social accounting resulting from a clash between preferred student learning attributes and those embodied in social accounting. The use of action oriented teaching strategies to counteract this dilemma is identified. Similar problems and solutions may be applicable for other innovative accounting topics. (Reprinted by permission of the publisher.)

Accounting, Study and teaching, Social accounting

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Economic benefits of enterprise resource planning systems: some empirical evidence

Article Abstract:

A study is conducted to analyze the efficacy and economic benefits of enterprise resource planning (ERP) systems. Results of the study show that liquidity and operational efficiency of firms that use ERP systems are high.

Australia, Electronic computers, Electronic Computer Manufacturing, Management Informatn Computer Systems, Management Information Systems, Usage, Evaluation, MIS, Enterprise resource planning

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