Effect of Experience On the Auditor's Organization And Amount of Knowledge
Effect of Experience On the Auditor's Organization And Amount of Knowledge
Tubbs, Richard M.
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Therefore, the more experienced subjects seem to be aware of two features of errors and irregularities while the less experienced subjects seem to be aware of only one. The general four-group individual differences additive clustering solution, with r2=.428, yielded interpretable groups (see table 10) . Addition of a fifth group added only .04 to R^ , and addition of subsequent groups added even less to the explanatory power of the solution. Therefore, the additional groups were ignored. 64 The... items in group 1 ,1, 5) are both irregularities, and both occur in the cash receipts department. The items in group 2 (3, 8) are non-cash errors that violate the validity objective. Group 3 contains two items (2, 5) that both result in overstatement of accounts receivable. The items in group 4 (1, 6) are irregularities that result in an understatement of accounts receivable. Therefore, the subjects seem to group on features such as severity (error versus irregularity), department, internal control objective, and account affected.
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