search query: @author Wright, A. / total: 24
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| Author: | Wright, A. Wright, S. |
| Title: | The relationship between assessments of internal control strength and error occurrence, impact and cause |
| Journal: | Accounting and Business Research
1996 : WINTER, VOL. 27:1, p. 58-71 |
| Index terms: | AUDITING EFFECTIVENESS CONTROL |
| Language: | eng |
| Abstract: | This article examines the occurrence, financial impact and cause of detected misstatements as related to the assessed strength of internal controls. As assessed internal control weakened, the frequency of adjustments increased and adjustments were more likely to have an effect on income. Error magnitude did not differ across control strength settings. Errors reflected understatement of assets and liabilities when controls deteriorated, while when controls were strong, assets and liabilities were more frequently overstated. The causes of adjustments reflect a greater frequency of routine errors as controls deteriorate although cut-off errors were common across all control settings. Different audit strategies are appropriate in response to variations in controls. |
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