“Real-izing” the benefits of new technologies as a source of audit evidence: An interpretive field study

Fischer, Michael J.

doi:10.1016/0361-3682(95)00005-4

Cited by 100 publications

(56 citation statements)

References 5 publications

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“…Fischer (1996) researched that particular area and stressed that there must be a better way of conducting more costefficient audits without sacrificing effectiveness. He suggested that a new approach to adapting new technological tools should reduce or eliminate the costly substantive audit procedures.…”

Section: Bra Demand or Supplymentioning

confidence: 99%

The application of business risk audit methodology within non-Big-4 firms

Kutum¹,

Fraser

Hussainey

2015

Journal of Financial Reporting and Accounting

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Purpose – This paper aims to explore the application of the business risk audit (BRA) approach within non-Big-4 audit firms in the USA, the UK and Canada. This paper focuses on the motivation for adopting this approach for non-Big-4 audit firms in the three countries, and the advantages, disadvantages and aftermath of applying this method. Design/methodology/approach – A combination of qualitative and quantitative methods to obtain the data necessary to address the research questions was used. Findings – It is found that non-Big-4 audit firms in the three countries have adopted BRA; their motivation was primarily to follow the standards in each country, and the general trend in the industry. The advantages identified are consistent with previous research; a direct benefit was noted for audit effectiveness and risk management for both clients and auditors. One major disadvantage of applying BRA is the cost burden to both the audit firm and their clients. Some of the interviewees claimed that this method is better suited to large firms and large audits. Originality/value – This is an innovative study that addresses a contemporary auditing issue. The majority of the audit research studies concentrate on the big audit firm practices; this study is the first to examine the application of audit practices within smaller audit firms.

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Section: Bra Demand or Supplymentioning

confidence: 99%

The application of business risk audit methodology within non-Big-4 firms

Kutum¹,

Fraser

Hussainey

2015

Journal of Financial Reporting and Accounting

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“…Although prior studies used field-based approaches to describe the external auditors' perceptions about the use of audit-related IT (Fischer 1996;Janvrin et al 2008), to our knowledge, ours is one of the first study to provide archival evidence regarding external audit cost outcomes from the client's implementation of assurance-related technology.…”

Section: Audit Efficiencymentioning

confidence: 99%

“…Some research in this area focuses on the use of IT by auditors and the effect of IT on auditors' judgments (e.g., Messier 1995;O'Donnell and David 2000;Brazel et al 2004;O'Donnell and Schultz 2003;Bible et al 2005;Bedard et al 2007;Dowling and Leech, 2007;Dowling 2009). Other research involves field-based surveys that describe assurance providers' perceptions about the importance and benefits of using audit-related IT (e.g., Fischer 1996;Behn et al 2006;Janvrin et al 2008). There is relatively little archival research in auditing regarding the benefits of assurance-related IT.…”

Section: Introductionmentioning

confidence: 99%

Examining the Potential Benefits of Internal Control Monitoring Technology

Masli

Peters

Richardson

et al. 2010

The Accounting Review

177

103

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We thank Jim Hunton (editor), Steven Kachelmeier (senior editor), and two anonymous reviewers for their helpful guidance. We appreciate the helpful comments from Alberto Dorantes, Michael Ettredge, Robert Examining the Potential Benefits of Internal Control Monitoring TechnologyABSTRACT: We analyze the potential benefits that firms can realize from implementing technology specifically aimed at monitoring the effectiveness of their internal control systems. The Committee of Sponsoring Organizations of the Treadway Commission asserts that effective internal control monitoring should enhance the efficiency of internal control processes, and in turn, the assurance over such processes (COSO 2009a). We develop hypotheses to test the realization of these potential benefits. Specifically, we identify a sample of firms that implemented internal control monitoring technology in response to the internal control requirements of the Sarbanes-Oxley Act. Consistent with our hypotheses, we document that the implementation of internal control monitoring technology is associated with lower likelihood of material weaknesses, smaller increases in audit fees, and smaller increases in audit delays during the post-SOX time period. We discuss the potential implications of our findings for research related to continuous monitoring, client-provided assurance assistance, and information technology governance.

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“…These aspects are captured in auditing literature that discusses auditing and audit firms in terms of, for example, business and financial gain (cf. Kaplan, 1987;Hanlon, 1996;Gendron, 2002;Boyd, 2004;Forsberg and Westerdahl, 2007;Broberg, 2013), and costs, time efficiency, and effectiveness (e.g., Mullarkey, 1984;Cushing and Loebbecke, 1986;Bamber et al, 1989;Fischer, 1996;Hanlon, 1996;Myers, 1997;Manson et al, 2001;Power, 2003;Broberg, 2013;Broberg et al, 2016).…”

Section: Professional and Organizational Identities And Firm Process mentioning

confidence: 99%

Auditors’ professional and organizational identities and commercialization in audit firms

Broberg

Umans

Skog³

et al. 2018

AAAJ

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Purpose: This paper seeks to explain how auditors' professional and organizational identities are associated with commercialization in audit firms. Unlike previous studies exploring the consequences of commercialization in the firms, our study directs its attention toward the potential driver of commercialization, which we argue to be the identities of the auditors. Design/methodology/approach: The paper is based on 374 responses to a survey distributed to 3588 members of FAR, the professional association of accountants, auditors and advisors in Sweden. The study used established measures of organizational and professional identity and introduced market, customer and firm process orientation as aspects of commercialization. The study explored the data through descriptive statistics, principle component analysis and correlation analysis and tested the hypotheses with multiple linear regression analysis. Findings: The findings indicated that the organizational identity of auditors has a positive association with three aspects of commercialization: market orientation, customer orientation and firm process orientation. Contrary to the arguments based on prior literature, our study has found that the professional identity of auditors is also a positively associated with commercialization. This indicates a change of the role of professional identity vis-à-vis commercialization of audit firms. The positive association between professional identity and commercial orientation could indicate the development of "organizational professionalism." The study also found differences between the association between professional identity and commercialization in Big 4 and non-Big 4 firms. While in Big 4 firms, professional identity is positively associated only with the firm's process orientation, in non-Big 4 firms, professional identity has a positive association with all three aspects of commercialization. Originality/value: The paper provides insight into how auditors' identities have influenced commercialization of audit firms and into the normalizing of commercialization within auditing. The study also developed a new instrument for measuring commercialization, one based on market, customer and firm process orientation concepts. This paper suggests that this instrument is an alternative to the observation through proxies.

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“Real-izing” the benefits of new technologies as a source of audit evidence: An interpretive field study

Cited by 100 publications

References 5 publications

The application of business risk audit methodology within non-Big-4 firms

The application of business risk audit methodology within non-Big-4 firms

Examining the Potential Benefits of Internal Control Monitoring Technology

Auditors’ professional and organizational identities and commercialization in audit firms

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