TY - JOUR
T1 - Audit sampling research
T2 - A synthesis and implications for future research
AU - Elder, Randal J.
AU - Akresh, Abraham D.
AU - Glover, Steven M.
AU - Higgs, Julia L.
AU - Liljegren, Jonathan
N1 - Copyright:
Copyright 2013 Elsevier B.V., All rights reserved.
PY - 2013
Y1 - 2013
N2 - while research has influenced auditing standards for audit sampling, academic research provides limited insights into the current use of audit sampling. We synthesize relevant research based on a sampling decision framework and suggest areas for additional research. Important judgments include determining if sampling applies, what type of sampling to apply (e.g., attribute or monetary sampling), whether to use statistical or nonstatistical techniques, appropriate inputs to determine sample size, and evaluation of results, particularly when errors are observed in the sample. Several of these judgments may be influenced by environmental factors, such as regulation, litigation, competition, culture, and technology, and there are a number of research opportunities available in exploring how these environmental factors influence audit sampling decisions. Research indicates that auditors may underestimate risks and required assurance in order to reduce the extent of testing, although some of this research predates current risk assessment standards, as well as recent regulatory changes. Research also indicates auditors sometimes fail to project sample errors, and are prone to decision biases when evaluating nonstatistical samples. More recent research finds low rates of sample errors in many sampled populations, indicating that some sampling concerns may be mitigated in the post-Sarbanes-Oxley (SOX) environment.
AB - while research has influenced auditing standards for audit sampling, academic research provides limited insights into the current use of audit sampling. We synthesize relevant research based on a sampling decision framework and suggest areas for additional research. Important judgments include determining if sampling applies, what type of sampling to apply (e.g., attribute or monetary sampling), whether to use statistical or nonstatistical techniques, appropriate inputs to determine sample size, and evaluation of results, particularly when errors are observed in the sample. Several of these judgments may be influenced by environmental factors, such as regulation, litigation, competition, culture, and technology, and there are a number of research opportunities available in exploring how these environmental factors influence audit sampling decisions. Research indicates that auditors may underestimate risks and required assurance in order to reduce the extent of testing, although some of this research predates current risk assessment standards, as well as recent regulatory changes. Research also indicates auditors sometimes fail to project sample errors, and are prone to decision biases when evaluating nonstatistical samples. More recent research finds low rates of sample errors in many sampled populations, indicating that some sampling concerns may be mitigated in the post-Sarbanes-Oxley (SOX) environment.
KW - Audit evidence
KW - Audit sampling
KW - Post-SOX environment
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U2 - 10.2308/ajpt-50394
DO - 10.2308/ajpt-50394
M3 - Article
AN - SCOPUS:84878330641
SN - 0278-0380
VL - 32
SP - 99
EP - 129
JO - Auditing
JF - Auditing
IS - SUPPL.1
ER -