IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Auditor Detected Misstatements and the Effect of Information Technology

Listed author(s):
  • Austen, Lizabeth A.


    (Department of Accounting, College of Business, East Carolina University)

  • Eilifsen, Aasmund


    (Dept. of Accounting, Auditing and Law, Norwegian School of Economics and Business Administration)

  • Messier Jr., William F.


    (School of Accountancy, J. Mack Robinson College of Business, Georgia State University)

Registered author(s):

    This paper presents information on the causes and detection of misstatements by auditors and the relationship of those misstatements with information technology (IT). The last major study of misstatements and IT used data that was gathered in 1988. In the intervening period, there have been significant changes in IT, possibly altering the error generation and detection process. Two research questions related to detected misstatements and the effect of IT are examined. The six largest public accounting firms in Norway provided data from 58 engagements. We find that (1) the major causes of misstatements were missing, poorly designed, and improperly applied controls; inadequate methods used to select, train and supervise accounting personnel; and an excessive workload for accounting personnel, (2) missing and poorly designed controls, and excessive workload for accounting personnel were more likely to be causes of misstatements in computerized business processes than those that were not computerized, and (3) the increased use of tests of details over attention directing procedures on audits appears to result from auditors deciding that it is more effective or efficient to conduct such tests than rely upon IT controls. These findings have important implications for both audit practitioners and researchers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Department of Business and Management Science, Norwegian School of Economics in its series Discussion Papers with number 2004/1.

    in new window

    Length: 26 pages
    Date of creation: 12 Mar 2004
    Handle: RePEc:hhs:nhhfms:2004_001
    Contact details of provider: Postal:
    NHH, Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway

    Phone: +47 55 95 92 93
    Fax: +47 55 95 96 50
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:hhs:nhhfms:2004_001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stein Fossen)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.