Abstract This paper reports the results of a study to examine the effects of certain situational variables on auditor judgments about the proper nature and extent of analytical review procedures in the payroll audit area. Forty-four management and senior-level auditors participated in a controlled experiment using simulated audit cases. Two independent variables were examined: a checklist of suggested analytical review procedures, and the scope of work done in the prior year's audit program. Dependent variables were the choices that auditors make in completing an audit program and the related time budget (planning variables), and the choices they make in applying analytical review (usage variables). Significant variability of judgments among auditors appeared throughout the findings for all planning variables, though not for the usage variables. The checklist treatment had a weak and unexpected effect on planning judgments, while the results for the audit program treatment were mixed.
Blocher et al. (Thu,) studied this question.