The Influence Of Information Technology Control Activities On The Financial Statement Audit

Abstract

This study examines the influence of assessed information technology (IT) control reliability on financial statement audit effort and fees. Since SAS 94 requires auditors to consider an auditee’s use of IT controls during audit planning, this study seems highly relevant. Using archived audit workpaper documentation, our results show that IT control strength assessments are inversely associated with control risk assessments, audit hours, and fees. Results also show that both the control risk and IT control strength assessments have similar influence on hours and fees.