Consensus of Auditors' Materiality Judgments of Internal Accounting Control Weaknesses

Mayper, Alan G.

doi:10.2307/2490901

Cited by 16 publications

(19 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…write-off of obsolete inventory, a gain on sale of property, bribe, a lawsuit and discontinued product line). Mayper et al (1989) also found a diversity in the importance attached to type of internal control and type of asset. Carpenter and Dirsmith's (1992) results indicate that the nature of the transaction plays an influential role in the formation of audit materiality judgments (i.e.…”

Section: Relationship Between Ir and Materialitymentioning

confidence: 97%

“…The majority of research to date on materiality has addressed materiality judgments at the evaluative stage of the audit process. The few studies that address planning stage materiality are Mayper (1982), Steinbart (1987) and Pany and Wheeler (1989). None of these studies address the relationship between materiality and audit procedures.…”

Section: Materialitymentioning

confidence: 99%

“…Although no research to date has addressed this relationship specifically, the studies to date have examined a wide range of items and their effect on materiality decisions. The items examined include internal controls and types of assets (Mayper, 1982;Mayper et al, 1989), inventory writedown (Messier, 1983;Jennings et al, 1987), sale of property, bribe, discontinued product line (Jennings et al, 1987), lawsuit contingency (Pilote, 1992;Jennings et al, 1987) capitalization of interest (Morris and Nichols, 1988), debt extinguishment (Carpenter and Dirsmith, 1992), change in accounting policy (Chewning et al, 1989) and treatment of errors (Icerman and Hillison, 1991). Given the diversity of the items, it is difficult to integrate and generalize the results of these studies.…”

Section: Relationship Between Ir and Materialitymentioning

confidence: 99%

See 2 more Smart Citations

The Assessment and Integration of Materiality and Inherent Risk: An Analysis of Major Firms' Audit Practices

Martinov

Roebuck

1998

Int J Auditing

View full text Add to dashboard Cite

This study focuses on how inherent risk and materiality assessments are made and how they are integrated in the planning of audit testing. Both of these assessments are an integral part of the audit planning process under the current 'audit risk model'.The analysis of audit manuals, other relevant decision aids and interviews with the technical partner or manager from each of the 'Big 6' accounting firms in Australia provided the source of data for the study. The findings indicate a diversity in firms' approaches to adopting the overall risk model framework, the inherent risk and control risk concepts and the levels at which these are assessed. Similarly, although all the firms set an overall planning materiality, diversity exists in relation to the level of guidance and judgment involved, the actual guidelines used, and the utilization of additional materiality levels such as an account level materiality. The firms' practices of integrating materiality and inherent risk are also diverse and the linkage is generally implicit rather than explicit. These findings are significant in terms of potential efficiency and effectiveness implications between different firms' practices. SUMMARYThis is a descriptive study investigating approaches employed by the major accounting firms in determining materiality and inherent risk assessments during the planning stage of the audit. Both of these assessments are considered to be a critical part of the planning stage of the audit and are prescribed by the professional pronouncements in Australia, the US, the UK, Canada and New Zealand. Given that the professional pronouncements provide relatively little guidance as to how these assessments should be made and integrated in practice, the objective of this study is to provide an under-

show abstract

Section: Relationship Between Ir and Materialitymentioning

confidence: 97%

Section: Materialitymentioning

confidence: 99%

Section: Relationship Between Ir and Materialitymentioning

confidence: 99%

See 1 more Smart Citation

The Assessment and Integration of Materiality and Inherent Risk: An Analysis of Major Firms' Audit Practices

Martinov

Roebuck

1998

Int J Auditing

View full text Add to dashboard Cite

show abstract

“…Although disclosures of material weaknesses are effectively mandatory, it is possible that individual firms or auditors apply different materiality standards in deciding what to disclose. While we do not have a model of the materiality threshold of material weaknesses (Mayper, 1982;Mayper et al, 1989;Messier et al, 2005), our determinants results are similar to those documented by Ashbaugh-Skaife et al (2007) who examine all types of significant deficiencies (i.e., not just those internal control weaknesses that meet the threshold to be classified as ''material weaknesses'') and find that firms disclosing significant deficiencies typically have more complex operations, recent changes in organization structure, more accounting risk exposure, and fewer resources to invest in internal control. Therefore, it appears that our results extend to a broader sample that does not rely on a potentially subjective judgment of what constitutes a ''material weakness,'' although it is still possible that the broader sample in Ashbaugh-Skaife et al (2007) suffers from the same concern.…”

Section: Article In Pressmentioning

confidence: 99%

Determinants of weaknesses in internal control over financial reporting

Doyle

McVay

2007

Journal of Accounting and Economics

1,092

818

View full text Add to dashboard Cite

“…An indepth discussion on the parametric Bonferroni procedure can be found in Neter et al (1985). Another example is Mayper (1982), who used a non-parametric Kendal's coefficients of concordance to adjust his 3-factorial repeatedmeasures design consisting of 34 subjects. Siegal and Castellan (1988) provide more discussions on the Kendal's coefficients and other non-parametric statistics.…”

Section: Designmentioning

confidence: 99%

A Commentary on Sample Design Issues in Behavioral Accounting Experiments

Choo

Tan

2006

Accounting Research 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.

show abstract

Consensus of Auditors' Materiality Judgments of Internal Accounting Control Weaknesses

Cited by 16 publications

References 3 publications

The Assessment and Integration of Materiality and Inherent Risk: An Analysis of Major Firms' Audit Practices

The Assessment and Integration of Materiality and Inherent Risk: An Analysis of Major Firms' Audit Practices

Determinants of weaknesses in internal control over financial reporting

A Commentary on Sample Design Issues in Behavioral Accounting Experiments

Contact Info

Product

Resources

About