audits, risk, analytical procedures
Auditors perform analytical procedures in planning the nature, timing and extent of testing. Significant fluctuations between the current year’s unaudited data and expected results signal an increased risk of material error and help auditors focus their planned tests on high-risk areas. This study examined auditors’ decisions to revise preliminary audit plans after analytical procedures performed during planning revealed significant, unexpected fluctuations. Specifically we examined whether the extent of corroboration for management’s explanation for the fluctuation and the presence of an explicit incentive for management to misstate the financial statements influenced auditors’ decisions to revise their audit plans.
Original Publication Citation
S.M. Glover, J. Jiambalvo, J. Kennedy. "Analytical Procedures and Audit Planning Decisions: Unexpected Fluctuations That Influence Auditors to Revise Their Audit Plans", Journal of Accountancy Volume 191, Issue 2, 2, 21.
BYU ScholarsArchive Citation
Glover, Steven M.; Jiambalvo, James; and Kennedy, Jane, "Research Summary 6: Analytical Procedures and Audit Planning Decisions" (2001). Faculty Publications. 1096.
American Institute of Certified Public Accountants
Marriott School of Management
© 2001 AICPA all rights reserved. Reprinted with permission.
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