Inherent risk: An investigation of auditors' judgments |
| |
| Authors: | Janet L. Colbert |
| |
| Affiliation: | 1. Machine Intelligence Institute, Iona College, New Rochelle, NY 10801, United Statesn;2. ALISR Laboratory, College of Computer and Information Sciences, King Saud University, Riyadh, Saudi Arabia;3. Visiting Distinguished Professor King Saud University, Riyadh, Saudi Arabia;1. Institute of Mathematics, Jagiellonian University, Łojasiewicza 6, Cracow 30-348, Poland;2. Freiburg University, Department of Mathematics, Ernst-Zermelo-Str. 1, Freiburg 79106, Germany;3. Freiburg Institute of Advanced Studies (FRIAS), Germany;4. University of Strasbourg Institute for Advanced Study (USIAS), France;1. College of Business Administration, California State University, 6000 J St., Sacramento, CA 95819, United States;2. School of Accounting, College of Business, James Madison University, 800S. Main, Harrisonburg, VA 36265, United States |
| |
| Abstract: | ![]()
The assessment of inherent risk is a judgment required of auditors by Statement on Auditing Standards 47 (Auditing Standards Board, AICPA, New York, 1983) that normatively affects the scope of work performed on audit engagements. This study explores the judgments of auditors concerning inherent risk in inventory. Four inherent risk factors were examined: turnover of the controller, financing pressure, the amount of complexity of overhead in inventory, and the quality of the personnel responsible for the inventory calculation. A human information processing approach employing ANOVA was utilized to determine the relative reliance on these factors in the inherent risk judgments of 65 practicing auditors. Correlation techniques were used to measure consensus, reliability, and self-insight.The results suggest that although all four inherent risk factors were important to auditors, quality of personnel was the most significant. Reliability was slightly lower than in previous research, but was still fairly high. Self-insight was moderate. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
