ABSTRACT: Our study matches workpaper preparers with reviewers to investigate whether task‐specific experience moderates the effect of fraud assessment documentation structure on the audit review team's ability to identify control weaknesses. Consistent with expectations, we find that preparers using a component documentation structure provided more favorable (and lower quality) assessments of control weaknesses than those using either a supporting or balanced documentation structure. Results indicate that preparer task‐specific experience moderated this effect. Results also indicate that reviewer task‐specific experience moderated the effect of documentation structure on reviewers' identification of control weaknesses such that experienced reviewers compensated more for the effect of component documentation than auditors with less experience. These results suggest that reviewer task‐specific experience may help reduce the previously observed “flow‐through” effect of preparer workpaper deficiencies on reviewer judgments and provide support for new regulations emphasizing the role of experience during the control assessment process.
