Browsing by Author "Folorunsho Quadri Dauda"

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    AUDIT PARTNER REFERENCES AND RISK ASSESSMENT: IMPLICATIONS FOR AUDITOR PROGRAM PLANS
    (Ilorin Journal of Management Sciences, 2014) Oladipupo Muhrtala Tijani; Lukman Adebayo Oke; Dauda Abiola Badmus; Folorunsho Quadri Dauda
    The purpose of this study is to explore the effects of risk assessments and partner preferences for either effectiveness or efficiency on auditors’ program plans for budgeted hours and planned tests. Importantly, the partner can set the tone on the engagement by communicating to staff the priorities in addressing competitive pressures. To examine these issues, 39 auditors completed a case based on an actual audit client in which they were asked to perform program planning for the revenue cycle. Partner preferences for either efficiency or effectiveness were manipulated in a between-subjects design. Results indicate that auditors budgeted more (fewer) hours in response to a partner preference for effectiveness (efficiency), consistent with expectations. In addition, there was a significant interaction between auditors’ risk assessments and partner preferences, suggesting that the positive relationship between auditors’ risk assessments and budgeted hours and planned tests held when there was a partner preference for efficiency. These results extend prior research on accountability and partner preferences by suggesting that the preferences of the engagement partner can influence the audit planning of the audit senior by affecting the relationship between the senior’s assessed risk and the nature and extent of the audit work planned.