Persistent Link:
http://hdl.handle.net/10150/290245
Title:
Evidential effort and risk
Author:
Kizirian, Tim
Issue Date:
2001
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
There is widespread recognition in the accounting literature that properly directed audit effort is critical to an effective and efficient engagement. Auditors assess the risks of managerial misstatements and use these risks to plan audit procedures. Prior studies examining the linkage between assessed risk and audit effort report weak and conflicting results. The unobservable nature of the audit process necessitates the use of proxies to capture assessed risks and audit effort. This study utilizes proprietary audit workpaper data to obtain better measurement of assessed risks and effort. These improved measurements provide stronger evidence on whether changes in assessed risks will affect the nature, timing, and extent of audit testing. This linkage is examined first using OLS and then an instrumental variables approach to address potential simultaneity in determining the nature, timing, and extent of substantive effort. In contrast to prior research, results suggest that auditors vary the nature, timing, and extent of substantive effort in response to assessed auditee risks.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Business Administration, Accounting.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Graduate College; Industrial Management
Degree Grantor:
University of Arizona
Advisor:
Felix, William F.

Full metadata record

DC FieldValue Language
dc.language.isoen_USen_US
dc.titleEvidential effort and risken_US
dc.creatorKizirian, Timen_US
dc.contributor.authorKizirian, Timen_US
dc.date.issued2001en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThere is widespread recognition in the accounting literature that properly directed audit effort is critical to an effective and efficient engagement. Auditors assess the risks of managerial misstatements and use these risks to plan audit procedures. Prior studies examining the linkage between assessed risk and audit effort report weak and conflicting results. The unobservable nature of the audit process necessitates the use of proxies to capture assessed risks and audit effort. This study utilizes proprietary audit workpaper data to obtain better measurement of assessed risks and effort. These improved measurements provide stronger evidence on whether changes in assessed risks will affect the nature, timing, and extent of audit testing. This linkage is examined first using OLS and then an instrumental variables approach to address potential simultaneity in determining the nature, timing, and extent of substantive effort. In contrast to prior research, results suggest that auditors vary the nature, timing, and extent of substantive effort in response to assessed auditee risks.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectBusiness Administration, Accounting.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.disciplineIndustrial Managementen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorFelix, William F.en_US
dc.identifier.proquest3016494en_US
dc.identifier.bibrecord.b41939177en_US
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