Descriptive Evidence from Audit Practice on SAS No. 99 Brainstorming Activities

19 Pages Posted: 7 Oct 2007

See all articles by Jodi L. Gissel

Jodi L. Gissel

University of Wisconsin - Whitewater

Karla M. Zehms

University of Wisconsin - Madison - Department of Accounting and Information Systems

Date Written: September 2007

Abstract

This paper describes how auditors conduct brainstorming sessions to comply with the requirements of SAS No. 99. We gather evidence by interviewing twenty-two auditors at all personnel levels across seven audit firms (including all of the Big 4 firms) and by observing actual brainstorming sessions. The results reveal how auditors prepare for brainstorming sessions and allow us to describe a typical four-step brainstorming session process. We describe brainstorming group interactions and provide evidence on brainstorming session outcomes in terms of fraud risk assessments, audit plan modifications, and budget modifications. Finally, we report how audit firms encourage professional skepticism during brainstorming.

Keywords: fraud, brainstorming, audit

JEL Classification: M41, M49

Suggested Citation

Gissel, Jodi Lynn and Zehms, Karla M., Descriptive Evidence from Audit Practice on SAS No. 99 Brainstorming Activities (September 2007). Available at SSRN: https://ssrn.com/abstract=1019573 or http://dx.doi.org/10.2139/ssrn.1019573

Jodi Lynn Gissel (Contact Author)

University of Wisconsin - Whitewater ( email )

800 W. Main
Whitewater, WI 53190
United States

Karla M. Zehms

University of Wisconsin - Madison - Department of Accounting and Information Systems ( email )

School of Business
975 University Avenue
Madison, WI 53706
United States
608-234-1052 (Phone)
608-265-5031 (Fax)

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