What question did this study set out to answer?

To describe the subjective decision environment of external auditors during a normal manufacturing company audit.

March 18, 2026

Auditors' Subjective Decision Environment-The Case of a Normal External Audit.

Key Points

To describe the subjective decision environment of external auditors during a normal manufacturing company audit.
Conducted an extensive questionnaire with auditors from six national public accounting firms in Canada.
Collected responses from eighty partners and managers.
Evaluated perceptions of environmental components at various audit stages.
Identified a complex environment influencing auditors' decisions.
Noted that some environmental components were consistently important, while others varied throughout the audit.
Highlighted the interdependence and client-oriented nature of the audit environment.

Abstract

Abstract ABSTRACT: A description was developed of external auditors' subjective decision environment in the case of a normal manufacturing company audit. Eighty partners and managers from six national public accounting firms in Canada responded to an extensive questionnaire asking them to evaluate potential environmental components at several stages in the audit engagement: (1) before the beginning of the work, (2) at several operational stages and (3) after the audit's completion. The audit environment was revealed to be complex: though some components were perceived to be consistently important throughout the audit, the importance of others waxed and waned as the audit progressed. A highly interdependent, client-oriented environment was portrayed by respondents.

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Auditors' Subjective Decision Environment-The Case of a Normal External Audit.

Key Points

Abstract

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