The Accounting Review Vol. 56 No. 2 1981

Characteristics of Errors in Accounts Receivable and Inventory Audits.

Johnny R. Johnson¹; Robert A. Leitch²; John Neter³

¹ Assistant Professor of Accounting, University of Georgia 1 · ² Associate Professor of Accounting, University of Georgia 2 · ³ Professor of Management Sciences and Statistics, University of Georgia 3

Abstract

Auditors require empirical information about the characteristics of errors in audit populations. In this paper, the error characteristics in 55 accounts receivable and 26 inventory audits are examined. First, the error rates present in these audits are analyzed, and the balance between overstatement and understatement errors is examined. The distributions of the error amounts and error taintings are then studied, as well as the relation between error amounts and book amounts. Some major findings are contrary to auditors' expectations, emphasizing the need for replication studies to further explore this area.

DOI

10.2308/tar-4482618

Volume

56

Issue

2

Pages

270-293

Language

en

Sources

openalex crossref

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