Accounting Commons^™

Do Auditors Adjust Their Audit Plans Accordingly When They Encounter Material Automated Control Weaknesses?, Daniel D. Selby

Accounting Faculty Publications

Automated control weaknesses are associated with defects in computer hardware or computer applications. AU 319 does not require auditors to add professionals with specialized skills in automated controls (or IT audit specialists) to the audit engagement. Auditors may encounter a material automated control weakness and adjust their audit plan without the assistance of an IT audit specialist. Thus, auditors may not adjust their audit plan enough to gain an understanding of the material automated control weakness. This is an important problem for auditors because this problem may result in misstated financial statements and incorrect internal control opinions if auditors fail …