Auditing Research: Past, Present & Future Arnie Wright

Auditing Research: Past Topic analysis of published AJPT articles while I was editor [ ] Three most frequent topics Auditor independence [9 articles independence in fact, 3 articles independence in appearance] Risk assessment and program planning Going concern reports

Auditing Research: Past Wide variety of topics Auditor changes/auditor selection Audit fees Litigation Audit performance individual factors (task experience, memory errors, accountability) Audit performance firm factors (Big N, specialization)

Auditing Research: Past Whats missing in this picture? Topics that didnt appear often Internal controls and IT Non-North American data/settings Continuous auditing Analytical procedures Fraud detection Practice notes

Auditing Research: Present Continued focus on auditor independence issues (e.g., non-audit services) and risk assessment/program planning (slight shift holistic audit approaches) Whats changed? Expanded attention to corporate governance Greater focus on fraud detection Increased attention to earnings management and auditor-client negotiations

Auditing Research: Future Impact of Sarbanes-Oxley Assurance on internal controls; IT environment Corporate governance mechanisms: audit committees; internal audit; board Regulation of the profession Auditing from a worldwide perspective International auditing standards Coordinating a global audit Audit environments outside Anglo-Saxon areas

Auditing Research: Future Continuous auditing Requires a fundamental shift of monitoring the accounting system and controls vs. auditing the balances Analytical procedures Holistic audit approaches Fraud detection Independence In appearance (limited research) Instilling professionalism and skepticism

Auditing Research: Future Fraud detection Improvements in risk assessment and designing an effective response Audit sampling Testing of controls post Sarbanes-Oxley Practice notes Two way communications with practice Innovative practices and i.d. of pressing issues

Auditing Research: Future Assurance services Demand/supply for various types of services worldwide Rise in disclosures of non-financial information