Throughout this chapter numerous references are made to audit research that lends insight into audit practice. For example, we learn from research that cognitive biases and working paper order affect audit decision-making, that successor auditors sometimes fail to initiate communication with predecessor auditors, and that companies in regulated industries may have fewer financial statement errors than companies in nonregulated industries. Research in auditing appears in a variety of journals, including Auditing: A Journal of Practice & Theory (A:A}P&T), The Accoimting Review (AR), and the Journal of Accounting Research (JAR). Although the research methods described in articles appearing in these journals can be inaccessible to some nonresearchers, the abstracts, introductions, and conclusions are intended to be accessible to all interested readers.

Required:

Select one of the steps in the audit process listed in Figures 6-9, 6-12, 6-13, and 6-14. For the step selected, locate at least two related articles from A:AJP&T, AR, and/or JAR, and prepare a report that summarizes how the articles add to your understanding of the audit process.

Transcribed Image Text:

Figure 6-9: The Audit Process Approximate Dates March April-May July-August September-November December-February Last day of field work Activity Communication with the audit committee. Decision to accept or continue the engagement. Engagement letter. General understanding of the business and industry. First-level planning. (See Figure 6-12.) Second-level planning. (See Figure 6-12.) Interim audit work. (See Figure 6-13.) Year end audit work. (See Figure 6-14.) Subsequent events. Management representation and legal letters. Reports.