System Controls Reliability and Assessment Effort

Document Type

Article

Publication Date

3-1-2005

Publication Title

International Journal of Auditing

DOI

10.1111/j.1099-1123.2005.00103.x

ISSN

1099-1123

Abstract

This study investigates whether internal control reliability affects information system audit hours and fees. Based on archived workpaper data from 60 clients of an international auditing firm we provide quantifiable evidence that well‐designed internal controls that are in place and operating effectively lead to decreased information system control assessment effort and lower assessment fees. The information system audit fee savings we document may be considered a significant benefit by companies determining the merit of an investment in information system controls.

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