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A Model of Auditors' Preliminary Evaluations of Internal Control from Audit Data.

Donald R. Nichols

The Accounting Review 1987

ABSTRACT: In this study, sections of working papers from audits performed by one office of a public accounting firm were obtained and investigated. The working papers contained the Information documented from the preliminary evaluation of internal control over the accounts receivable/sales area. Data from the working papers were provided as Input, and discriminant analysis was used to construct a descriptive model of the auditor preliminary evaluation judgments. The model correctly predicted about 80 percent of the individual auditor judgments, which is significantly more accurate than a chance model, end the importance of the presence or absence of particular control activities on the auditors' evaluations was investigated from the model.

DOI
10.2308/tar-4499079
Volume
62 (1)
Pages
183-190
Language
en
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