Showing papers on "Audit published in 1995"

The Alcohol Use Disorders Identification Test (AUDIT): validation of a screening instrument for use in medical settings.

Abstract: Objective: The concurrent, construct, and discriminant validity of the Alcohol Use Disorders Identification Test (AUDIT) were evaluated. AUDIT consists of a 10-item Core questionnaire and an 8-item Clinical procedure. AUDIT was designed to identify hazardous drinkers (whose drinking increases their risk of alcohol-related problems, though alcohol-associated harm has not yet occurred); harmful drinkers (who have had recent physical or mental harm from their drinking, but who are not alcohol-dependent); and people with alcohol dependence. Method: Known alcoholics (n = 65) and general medical patients (n = 187) completed self-report questionnaires and underwent a diagnostic interview, physical examination and laboratory testing. Results: AUDIT scores correlated significantly with scores on the MAST and MacAndrew alcoholism screening tests, and with ALAT, ASAT, GGT and MCV levels, which reflect recent heavy drinking. AUDIT scores were correlated with measures of alcoholism vulnerability (e.g., familial alcoho...

The AUDIT questionnaire: choosing a cut-off score

Abstract: The Alcohol Use Disorders Identification Test (AUDIT) is a 10-item questionnaire designed by the World Health Organization to screen for hazardous alcohol intake in primary health care settings. In this longitudinal study we examine its performance in predicting alcohol-related harm over the full range of its scores using receiver operating characteristic analyses. Three hundred and thirty ambulatory care patients were interviewed using a detailed assessment schedule which included the AUDIT questions. After 2-3 years, subjects were reviewed and their experience of alcohol-related medical and social harm assessed by interview and perusal of medical records. AUDIT was a good predictor of both alcohol-related social and medical problems. Cut-off points of 7-8 maximized discrimination in the prediction a trauma and hypertension. Higher cut-offs (12 and 22) provided better discrimination in the prediction of alcohol-related social problems and of liver disease or gastrointestinal bleeding, but high specificity was offset by reduced sensitivity. We conclude that the recommended cut-off score of eight is a reasonable approximation to the optimal for a variety of endpoints.

Lawsuits Against Auditors

Abstract: In this paper we compare two matched samples of 117 corporations whose auditors are and are not sued, to provide information on lawsuits. Lawsuits tend to be filed against auditors of client firms that have liquidity problems and poor stock price performance. There is little evidence of poorer accounting performance or accounting manipulation in the year in which wrongdoing is alleged to have occurred. The likelihood of a lawsuit against an auditor is greater if the audit report is qualified, the less structured is the audit and the larger the proportion of the auditor's revenues generated by the client. We also use multivariate models to compare the two samples. However, the multivariate analysis' data requirements reduce the number of observations in each sample to 21. Nevertheless, the multivariate analysis also suggests that we can discriminate between the litigation and control firms using the variables that are significant in the univariate analysis.

Cancer screening by primary care physicians: a comparison of rates obtained from physician self-report, patient survey, and chart audit.

Abstract: OBJECTIVES. This study measured the cancer screening rates of family physicians and compared the measures obtained through physician self-reports, chart audits, and patient surveys. METHODS. A cancer screening survey was sent to 50% of the members of the Washington Academy of Family Physicians, with 326 family physicians (74% response rate) completing the survey. Sixty physicians were recruited for the patient survey and chart audit phase, with a 90% participation rate. Patient surveys were conducted with about 350 patients per physician, and chart audits were conducted on a subset of about 50 patients per physician. Each physician's rate of providing each service was computed from the self-report, the patient survey, and the chart audit. RESULTS. Physicians provided many of these services at rates different from those commonly recommended. Large discrepancies were found between the rates measured by different methods. Correlations between rates derived from chart audits and patient surveys were high; how...

Judgment and decision-making research in accounting and auditing: The role of knowledge and memory in audit judgment

Abstract: Over the past decade, growing interest in the role of knowledge as a determinant of audit judgment performance has developed from three sources. First, observations that experienced auditors are paid more and assigned to what appear to be more demanding and important tasks (e.g., Gibbins, 1984) were not supported by consistent findings of experience–related performance differences (Wright, 1988; Bedard, 1989). This anomaly led to the realization that predicting and understanding the causes of experience effects requires more systematic analysis. In particular, it underscored the need to specify the knowledge necessary to complete different judgment tasks; when, how, and how well the knowledge would normally be acquired; and the cognitive process(es) through which the knowledge would be brought to bear on the decision task (Frederick and Libby, 1986; Abdolmohammadi and Wright, 1987). Second, increasing interest in less–structured audit judgment tasks (e.g., Einhorn, 1976; Kida, 1984; Libby, 1985; Biggs et al., 1988) such as analytical risk assessment, fraud detection, and going–concern judgments, focused attention on the role of the auditor's task–specific knowledge in problem recognition, hypothesis generation, and information search (cf. Libby, 1981,1983; Gibbins, 1984; Waller and Felix, 1984a). Third, while the above studies focused on general knowledge of audit phenomena, other researchers (e.g., Plumlee, 1985; Moeckel and Plumlee, 1989; Frederick, 1991) addressed the fact that memory for evidence gathered during a particular engagement has important implications for decision performance.

Predictive capacity of the AUDIT questionnaire for alcohol-related harm

Abstract: The Alcohol Use Disorders Identification Test (AUDIT) is a 10-item questionnaire designed to screen for hazardous and harmful alcohol consumption. We examined its ability to predict alcohol-related illness and social problems, hospital admission and mortality over a 2-3-year period. At initial interview, 330 ambulatory care patients were assessed using a detailed interview including the AUDIT questions and laboratory tests. After 2-3 years, 250 (76%) subjects were reassessed and their experience of alcohol-related harm determined. Of those who scored eight or more on AUDIT at initial interview, 61% experienced alcohol-related social problems compared with 10% of those with lower scores (p < 0.0001); they also had a significantly greater experience of alcohol-related medical disorders and hospitalization. AUDIT score was a better predictor of social problems and of hypertension than laboratory markers. Its ability to predict other alcohol-related illnesses was similar to the laboratory tests. However, gamma glutamyltransferase was the only significant predictor of mortality. We conclude that AUDIT should prove a valuable tool in screening for hazardous and harmful alcohol consumption so that intervention can be provided to those at particular risk of adverse consequences.

The AUDIT questionnaire: choosing a cut-off score. Alcohol Use Disorder Identification Test.

Abstract: The Alcohol Use Disorders Identification Test (AUDIT) is a 10-item questionnaire designed by the World Health Organization to screen for hazardous alcohol intake in primary health care settings. In this longitudinal study we examined its performance in predicting alcohol-related harm over the full range of its scores using receiver operating characteristic analyses. Three hundred and thirty ambulatory care patients were interviewed using a detailed assessment schedule which included the AUDIT questions. After 2-3 years, subjects were reviewed and their experience of alcohol-related medical and social harm assessed by interview and perusal of medical records. AUDIT was a good predictor of both alcohol-related social and medical problems. Cut-off points of 7-8 maximized discrimination in the prediction of trauma and hypertension. Higher cut-offs (12 and 22) provided better discrimination in the prediction of alcohol-related social problems and of liver disease or gastrointestinal bleeding, but high specificity was offset by reduced sensitivity. We conclude that the recommended cut-off score of eight is a reasonable approximation to the optimal for a variety of endpoints.

Effects of Expectations, Prior Involvement, and Review Awareness on Memory for Audit Evidence and Judgment

Abstract: In this paper, I investigate how the audit decision process is affected by prior expectations, prior audit involvement, and the review process. The first two features are inherent in repeat audit engagements, in which individuals tend to be assigned repeatedly to these engagements. I examine whether repeat engagements increase the likelihood that auditors' judgments will remain consistent with prior findings and whether staff rotations tend to reduce any such tendency. I also assess whether another control procedure employed in auditing, the review process, can overcome consistency effects. However, unlike prior studies of review processes (e.g., Trotman [1985] and Libby and Trotman [1992], but see Kennedy [1993] for an exception), I focus on the preventive effect of the threat of review on the reviewee's decision process. These attributes interact so that staff rotation and the prospect of review should reduce consistency effects arising from prior involvement (see, for example, Gibbins and Emby [1984], Ashton et al. [1989], and Libby [1989]).

Debiasing the curse of knowledge in audit judgment

Abstract: This research uses an experimental methodology to examine the "curse of knowledge" in judgment and the extent to which it is mitigated by accountability, experience, and counterexplanation. The curse of knowledge occurs when individuals are unable to (appropriately) disregard information already processed. Important audit implications of the curse of knowledge arise in going concern evaluation and analytical review. Experiments 1 and 2 examine these two contexts with both auditors and MBA students. Results show significant curse of knowledge effects among both auditors and MBA students. These effects are not mitigated by accountability, consistent with Kennedy's (1993) debiasing framework. A third experimentfinds that counterexplanation (explaining whya particularoutcome might not occur) does eliminate the curse of knowledge.

Judgment and decision-making research in accounting and auditing

Abstract: Contributors Series preface Preface Acknowledgements Part I. Overview: 1. Perspectives on judgement and decision-making research in accounting and auditing Robert H. Ashton and Alison Hubbard Ashton Part II. Judgment and Decision-Making Research Involving Users of Accounting Information: 2. Decision-making research in managerial accounting: return to behavioural-economics foundations William S. Waller 3. Experimental incentive-contracting research in management accounting S. Mark Young and Barry Lewis 4. Judgement and decision-making research in financial accounting: a review and analysis Laureen A Maines 5. The individual versus the aggregate Joyce Berg, John Dickhaut and Kevin McCabe Part III. Judgement and Decision-Making Research Involving Auditors of Accounting Information: 6. Judgment and decision-making research in auditing Ira Solomon and Michael D. Shields 7. The role of knowledge and memory in audit judgement Robert Libby 8. Research in and development of audit-decision aids William F. Messier Jr Part IV. Conclusion: 9. Twenty years of judgement research in accounting and auditing Michael Gibbins and Robert J. Swieringa References Index.

The control problem in public accounting firms: An empirical study of the impact of leadership style

Abstract: Prior research has highlighted the problem of dysfunctional reactions to control systems. Studies carried out in auditing firms have revealed high levels of budget pressure leading to a variety of dysfunctional behaviours which can be difficult to control. This study examines how subordinates' reaction to control systems is influenced by the leadership behaviour of supervisors. Data were collected by means of a questionnaire sent to all audit seniors in three Big Six audit firms. Two forms of dysfunctional behaviour were measured: under-reporting of time and audit quality reduction behaviour. A leadership style characterized by high structure and low consideration was found to be associated with the highest level of dysfunctional behaviour for all behaviours examined, while the lowest level of dysfunctional behaviour was associated with a style depicting low structure and high consideration. Perceived environmental uncertainty was found to moderate these relationships, and to exercise a stronger moderating effect for audit quality reduction behaviour than for under-reporting of time.

System/method for recovering network resources in a distributed environment, via registered callbacks

Abstract: A system and method for resource recovery in a distributed system uses a resource audit service to monitor the status of a client that receives a resource from a service that allocates the resource. The allocating service registers a callback with the resource audit service identifying the client. The resource audit service subsequently monitors the status of the client. When the resource audit service determines that the client has failed, the resource audit service performs the callback to the allocating service indicating the failure of the client. Upon receiving the callback, the allocating service is able to recover the resource from the client.

Justification of decisions in auditing

Abstract: The purpose of this study is to determine how the anticipation of the audit review process and the degree to which evidence supporting or refuting management's explanations influence the justifications of auditplanning decisions.1 When planning the audit, auditors will typically examine the financial statements for unexpected fluctuations in account balances and ratios that indicate where additional audit work may be warranted. After observing any unexpected fluctuations and asking management for explanations,2 auditors decide how (if at all) to revise the audit plan and document in the audit workpapers justifications for the plan. Because it is often difficult to gauge the correctness of audit-planning decisions, the justification of such decisions is critical for judging their quality (Peecher and Kleinmuntz [1991]).

Maintenance performance analysis: a practical approach

Abstract: Describes a practical approach to carrying out maintenance performance analysis through a quality audit, using quantifiable performance indicators. The principles of a practical approach to performing a quality audit of a maintenance department are presented. The audit comprises: a survey and collection of relevant information about the organization and the operation of the maintenance department; an in‐depth analysis of the information from a performance point of view; formulation of recommendations, setting priorities and plan of proposed actions; and performing cost benefit analysis to justify the proposed actions. A selection of quantifiable maintenance performance indicators used in the evaluation process is given and the values of ten performance indicators in three industrial sectors in Europe are given to illustrate the proposed approach.

Detection of problem drinkers: the Alcohol Use Disorders Identification Test (AUDIT)

Abstract: This study was conducted to test the predictive validity of a new alcohol screening test, the Alcohol Use Disorders Identification Test (AUDIT), in a general medicine teaching clinic and to assess physician recognition and treatment of alcohol and drug disorders. The research procedures included completion of the AUDIT, a standardized diagnostic alcohol and drug assessment, an exit interview, and a chart review. The random sample comprised 132 recruited subjects. The internal reliability of the AUDIT was .77. The optimal cutoff score for the AUDIT in this sample was 5, with a sensitivity of .61 and specificity of .84. The exit interviews revealed that physicians asked their patients about alcohol use and drug use with 20% (n = 26) and 17% (n = 23) of the sample, respectively. Five of the 28 patients who met DSM-IIIR criteria had a diagnosis recorded in the chart.

Remote duplicate database facility with database replication support for online DDL operations

Abstract: A local computer system has a local database, application programs that modify the local database, and a transaction manager that stores audit records in a local audit trail reflecting those application program modifications to the local database. A remotely located computer system has a backup database. A remote data duplication facility (RDF) maintains virtual synchronization of the backup database with the local database. The RDF includes an extractor process executed by the local computer system, and a receiver process and a plurality of updater processes executed by the remote computer system. The extractor process extracts audit records from the local audit trail and transmits those records to the receiver process. The receiver distributes the received audit records to a plurality of image trail files in the remote computer system for processing by updater processes, which initiate redo operations of database modifications denoted in at least a subset of the audit records against the backup database. A catalog manager on the local computer system performs online database restructurings while application programs continue to modify the database. The transaction manager stores a Stop Updaters audit record in the local audit trail when each online database restructuring successfully completes. The extractor process transmits the Stop Updaters audit record to the remote computer system and the receiver process moves a copy of each received Stop Updaters audit record into all of the image trails. Finally, each updater process stops execution when it reads a Stop Updaters audit record in its assigned image trail file.

Are Audit Committees Red Herrings

Abstract: The common expectation of committees established in the wake of the corporate debacles during 1980s in the English-speaking world is that the audit committee device will raise the standards of corporate accountability and governance by improving the quality of financial reporting. That expectation is based on the prevalent belief that by strengthening the independence of auditors and non-executive directors audit committee members will monitor the financial reporting process in an independent manner. Unless accounting practices are reformed so that financial statements can be authenticated by recourse to reliable commercial evidence, audit committees are red herrings. Such reforms are essential if audit committee members are to keep under vigilant appraisal matters pertaining to the financial governance of, and reporting by, firms: the raison d'etre of their appointment.

Knowledge structure and the estimation of conditional probabilities in audit planning

Abstract: Experienced auditors tend to structure their knowledge of financial statement errors with audit objective as the primary organizing dimension and transaction cycle as secondary. Yet, many audit tasks are structured in the opposite manner, requiring auditors to assess whether objectives are met for each transaction cycle. Our paper reports the results of an experiment which indicates that this mismatch between knowledge structure and task structure may hinder auditors' ability to draw on previous experiences when making conditional probability judgments and when allocating audit hours to various objectives within cycles. These results suggest one instance where knowledge structures that are often functional may have adverse effects when they do not match the task structure to which they are applied.

Assessing the quality of care.

Abstract: Measuring well supported processes may be more enlightening than monitoring outcomes Everyone wants information on clinical outcomes.1 These measures have an intuitive appeal: high quality care should be reflected by good outcomes. Therefore, poorer outcomes should indicate deficiencies in care, including missed opportunities or wasted resources. The hope is that data on outcomes will provide a barometer for health care, indicating the effectiveness and efficiency of service delivery. Many purchasers are pushing to include outcomes criteria in their contracts as a means of assessing effectiveness. In clinical audit, measurement of outcome is generally considered superior to audits that simply assess the process of care.2 But perhaps this emphasis on outcomes is being overplayed. Are outcomes data always so enlightening? Outcome measures have a major weakness: interpretation. Suppose a hospital reported that patients admitted with coronary heart disease in 1994 had a 30 day mortality of 25%. This can be interpreted only by comparison with …