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Understanding the structure of audit workpaper error knowledge and its relationship with workpaper review performance

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  • Noel Harding

Abstract

This study examines the veracity of two important, yet untested, premises underlying the interpretation of hierarchical variation in workpaper review performance. Prior research has argued that auditors at different hierarchical levels structure their knowledge of workpaper errors differently, and that these differences in knowledge structure give rise to hierarchical variation in the ability of auditors to identify mechanical and conceptual workpaper errors. This study directly examines the way in which audit firm managers, seniors and staff auditors structure their knowledge of audit workpaper errors and finds variation across hierarchical levels. These differences in knowledge structure were found to be associated with variation in workpaper review performance as they related to the identification of conceptual errors, but not, as proposed in prior research, mechanical workpaper errors. These results guide future research efforts aimed at improving workpaper review performance.

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  • Noel Harding, 2010. "Understanding the structure of audit workpaper error knowledge and its relationship with workpaper review performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(3), pages 663-683, September.
    • Handle: RePEc:bla:acctfi:v:50:y:2010:i:3:p:663-683
    DOI: 10.1111/j.1467-629X.2010.00342.x
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