System Controls Reliability and Assessment Effort

12 Pages Posted: 27 Apr 2005

See all articles by Ronald Daigle

Ronald Daigle

Louisiana State University, Baton Rouge - Department of Accounting

Tim Kizirian

California State University, Chico - Department of Accounting and MIS

L. Dwight Sneathen

Mississippi State University - School of Accountancy

Abstract

This study investigates whether internal control reliability affects information system audit hours and fees. Based on archived workpaper data from 60 clients of an international auditing firm we provide quantifiable evidence that well-designed internal controls that are in place and operating effectively lead to decreased information system control assessment effort and lower assessment fees. The information system audit fee savings we document may be considered a significant benefit by companies determining the merit of an investment in information system controls.

JEL Classification: G34, M49

Suggested Citation

Daigle, Ronald and Kizirian, Tim and Sneathen, L. Dwight, System Controls Reliability and Assessment Effort. Available at SSRN: https://ssrn.com/abstract=708654

Ronald Daigle (Contact Author)

Louisiana State University, Baton Rouge - Department of Accounting ( email )

E.J. Ourso College of Business Administration
2800 Business Education Complex
Baton Rouge, LA 70803
United States

Tim Kizirian

California State University, Chico - Department of Accounting and MIS ( email )

Chico, CA 95929
United States
530 898-6463 (Phone)

L. Dwight Sneathen

Mississippi State University - School of Accountancy ( email )

Mississippi State, MS 39762
United States
662 325-3710 (Phone)
662 325-1646 (Fax)

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