This study is a post‐SAS No. 82 replication of Zimbelman (1997) (hereafter Z97), which examined the effect of a separate and explicit fraud‐risk assessment as later required by SAS No. 82. Z97 found weak evidence that this requirement would impact auditors' planning judgments. However, because Z97 was conducted before SAS No. 82 was issued, that study was unable to capture the full effect of SAS No. 82 on the audit environment (e.g., related guidance and training, audit policy, and implementation experience). In this study, we compare pre‐ and post‐SAS No. 82 planning judgments and find that post‐SAS No. 82 judgments are more sensitive to fraud risk factors. Specifically, we find that post‐SAS No. 82 participants are more aware of the need to modify audit plans and are more likely to increase the extent of their audit tests in response to increased fraud risk when compared with the pre‐SAS No. 82 participants in Z97. However, we do not find evidence that auditors modify the nature of their planned tests in response to fraud risk either before or after SAS No. 82.
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1 September 2003
Research Article|
September 01 2003
A Test of Changes in Auditors' Fraud‐Related Planning Judgments since the Issuance of SAS No. 82
Steven M. Glover, Associate Professor;
Steven M. Glover, Associate Professor
aBrigham Young University.
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Douglas F. Prawitt, Associate Professor;
Douglas F. Prawitt, Associate Professor
aBrigham Young University.
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Joseph J. Schultz, Jr., Professor;
Joseph J. Schultz, Jr., Professor
bArizona State University.
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Mark F. Zimbelman, Assistant Professor
Mark F. Zimbelman, Assistant Professor
cBrigham Young University.
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Online ISSN: 1558-7991
Print ISSN: 0278-0380
American Accounting Association
2003
AUDITING: A Journal of Practice & Theory (2003) 22 (2): 237–251.
Citation
Steven M. Glover, Douglas F. Prawitt, Joseph J. Schultz, Mark F. Zimbelman; A Test of Changes in Auditors' Fraud‐Related Planning Judgments since the Issuance of SAS No. 82. AUDITING: A Journal of Practice & Theory 1 September 2003; 22 (2): 237–251. https://doi.org/10.2308/aud.2003.22.2.237
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