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

See all articles by Joseph F. Brazel

Joseph F. Brazel

North Carolina State University - Poole College of Management - Department of Accounting

Christopher P. Agoglia

University of Massachusetts at Amherst

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

Brazel, Joseph F. and Agoglia, Christopher P., The Effects of Computer Assurance Specialist Competence and Auditor AIS Expertise on Auditor Planning Judgments (February 1, 2004). Available at SSRN: https://ssrn.com/abstract=497287 or http://dx.doi.org/10.2139/ssrn.497287

Joseph F. Brazel (Contact Author)

North Carolina State University - Poole College of Management - Department of Accounting ( email )

Campus Box 8113
Nelson Hall
Raleigh, NC 27695
United States
919-513-1772 (Phone)

Christopher P. Agoglia

University of Massachusetts at Amherst ( email )

Department of Accounting & Information Systems
121 Presidents Drive
Amherst, MA 01003-4910
United States
413 545-5582 (Phone)
413 545-3858 (Fax)

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