Auditor analytical review judgement : a performance evaluation
Document Type
Journal article
Source Publication
British Accounting Review
Publication Date
3-1-2003
Volume
35
Issue
1
First Page
19
Last Page
34
Publisher
Academic Press
Keywords
Analytical review, Auditor judgement, Self-insight
Abstract
This study provides experimental evidence on several important measures for evaluating the performance of auditor judgement in an analytical review (AR) context. The results of the study suggest that UK auditors demonstrated only moderate level of judgement performance, as measured by consensus, consistency, and self-insight. Contrary to what might be expected, the study did not find that auditors from larger firms exhibited relatively greater consensus. In order to identify experience effects the paper employs the 'expertise paradigm' Accounting, Organizations and Society 18 (1993) 425]. Significant experience effects were identified implying that auditor judgement performance might be improved if less straightforward judgements were to be made by more senior auditors than is currently the case. The results of the study may have implications for both the cost structures and staffing policies of audit firms.
DOI
10.1016/S0890-8389(02)00107-5
Print ISSN
08908389
E-ISSN
10958347
Publisher Statement
Copyright © 2003 Elsevier Science Ltd. All rights reserved.
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Lin, K. Z., Fraser, I. A. M., & Hatherly, D. J. (2003). Auditor analytical review judgement: A performance evaluation. The British Accounting Review, 35(1), 19-34. doi: 10.1016/S0890-8389(02)00107-5