Preparers' control-risk assessments under alternative audit-review processes

摘要

This study investigates the impact of a decomposed audit-review process on audit preparers' control-risk assessments, taking audit experience into consideration. Using an experiment, it manipulates the audit-review type (decomposed review versus non-decomposed review) and preparers' audit experience level (more experienced versus less experienced). Analysis of data collected from two mid-tier audit firms supported the author's predictions. First, working-paper preparers assessed control risk more accurately in a decomposed than in a nondecomposed review. Second, less-experienced auditors benefitted more from a decomposed review than more-experienced auditors.