The Effects of Audit Structure and Experience on Auditors' Decisions to Isolate Errors
This study examines the effect of audit firm structure, control risk and task-related experience on auditors decisions to project sample errors to the population or to treat sample errors as isolated occurrences. One hundred forty-one practicing auditors from five Big 6 firms evaluated six error scenarios and indicated whether they would project or isolate each error. Results indicated that greater audit firm structure and task-related experience were associated with increased likelihood of projection. Control risk was not related to error projection. These results contribute to a growing body of research attempting to understand the auditor's judgment process in evaluating sample evidence.
Hermanson, H. M. (1997). The Effects of Audit Structure and Experience on Auditors' Decisions to Isolate Errors. Behavioral Research In Accounting, 976-93.