Audit technology and preferences for auditing standards

Auditing Standards, Professional Judgement, and Audit Quality∗

This paper examines the economic consequences of tightening auditing standards. We recognize that both auditors’ incentives and expertise are relevant for audit effectiveness. On one hand, tighter auditing standards counter the misbehavior of rogue auditors. On the other hand, tighter standards restrict auditors’exercise of professional judgement, leads to auditors’compliance mentality, and red...

Supplier Evasion of a Buyer’s Audit: Implications for Auditing and Compliance with Labor and Environmental Standards

Deadly factory fires. Illegal pollution. Injured workers. Many brands have recently been tarnished by publicity of suppliers’ labor and environmental violations, and have responded by increasing their auditing efforts. Anecdotal evidence suggests that “hiding”—supplier efforts to pass an audit through deception or corruption—is prevalent. Under that condition, we show analytically that increasi...

On Auditing Audit Trails

T he current auditing crisis of big business can provide useful lessons and suggestions for improving similar practices within the computer industry. Audit trails, whether computerbased or manually produced, typically form a significant part of the front-line defense for fraud detection and prevention within systems. Many of our security practices revolve around the generation and preservation ...

Proposed Framework for Reorganization of PCAOB Auditing Standards and Related Amendments to PCAOB Auditing Standards and Rules, PCAOB

We agree that the Board's existing auditing standards, consisting of sequentially numbered standards issued by the Board (the AS standards) and the AU sections representing the remaining interim standards that the Board has not superseded, present a confusing framework. While we agree that reorganization is needed and may help users navigate the standards more easily, we do not agree with the B...

Information Technology Auditing: A Value-Added IT Governance Partnership between IT Management and Audit