An Empirical Examination of Auditors' Initial Planning Processes.

This research study focuses upon the auditor's opinion formulation process. Using 60 auditors from national accounting firms, this study examined the effects of general practice priors, management integrity, and control consciousness on judgments of the likelihood of material error occurring in accounts receivable. The results of analysis of covariance suggest large decision variances across auditors, a high degree of significance attached to general practice priors, and significant control consciousness for audit seniors' preliminary evaluations of internal accounting control effectiveness. Management integrity was not significant. The implications of these results for practice and further research are summarized and discussed.