A recent change to audit workpaper review has been the movement toward delegating more review tasks to senior auditors and including more staff auditors in the review process. This study investigates the efficiency and effectiveness implications of this change. It considers the calibration of reviewers of different levels of experience on both conceptual and mechanical errors. The results reveal that reviewers are miscalibrated (overconfident) in their workpaper error judgments. No differences are found in the calibration of staff and senior auditors across hierarchical level or type of error. The implications for audit effectiveness are discussed in the paper.
Harding, N., Hughes, S. and Trotman, K. (2005), "Auditor Calibration in the Review Process", Arnold, V. (Ed.) Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 8), Emerald Group Publishing Limited, Bingley, pp. 41-57. https://doi.org/10.1016/S1475-1488(04)08002-0Download as .RIS
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