The Effects of Computer Assurance Specialist Competence and Auditor AIS Expertise on Auditor Planning Judgments
30 Pages Posted: 20 Feb 2004 Last revised: 26 Feb 2018
Date Written: February 1, 2004
Abstract
In complex accounting information system (AIS) environments, the exchange of audit evidence between computer assurance specialists (CAS) and auditors plays a critical role in determining audit quality. This study investigates the effects of CAS competence and auditor AIS expertise on auditor planning judgments in a complex AIS environment. The source competence literature in auditing has typically examined auditors' evaluations of evidence provided by sources with expertise structures similar to their own. However, the natural variation in knowledge structures which occurs between CAS and auditors likely results in a more complex relationship than those previously examined. This study utilizes a quasi-experiment, where CAS competence was manipulated as high and low between auditors and auditor AIS expertise was measured. Consistent with hypotheses, both auditor AIS expertise and CAS competence significantly affected auditor risk assessments in a complex AIS setting. Interestingly, with respect to the planning of substantive procedures, auditors' reactions to CAS competence variation was moderated by their own level of AIS expertise. Under conditions of low CAS competence, auditors with higher AIS expertise expanded the scope of their audit testing beyond the scope set by auditors with lower AIS expertise. No such auditor AIS expertise effect occurred when auditors received evidence from a highly competent CAS. These results suggest that auditors' AIS expertise can play a significant role in complex AIS environments and in their ability to compensate for CAS competence deficiencies.
Keywords: Accounting information systems, audit risk model, computer assurance specialist, ERP systems, expertise, source competence
JEL Classification: M49
Suggested Citation: Suggested Citation