The Impact of Auditing Research on Auditing Practice.

This article focuses on the impact of auditing research on auditing practice. Audit research affects practice in at least two ways. Primarily, it affects the academics who instruct the students, who are the future audit practitioners. Secondly, and more importantly, focused and practical audit research affects the auditing standard setting process at both the major firm level and at the Auditing Standards Board (ASB) level. An example of firm-sponsored research that resulted in a significant change in audit practice is the research into audit sampling conducted in the 1960s. This research led to the development of a special sampling methodology, primarily for Deloitte & Touche LLP, known within the firm as cumulative monetary amount sampling. The research that impacts the ASB also tends to he highly focused and practical. Audit research ignores the realities of the practice of public accounting that are likely to significantly impact the results of the research. Many practitioners reject audit research findings because they believe that the findings are not representative of the real practice of public accounting.