1. INTRODUCTION
Independent auditors, also known as certified public accountants
(CPAs), conduct audit work to ascertain whether the overall financial
statements of a company are, in all material respects, in conformity
with the generally accepted accounting principles (GAAP) (Konrath,
2002). Financial statements include Balance Sheets, Profit and Loss
Statements, Statements of Cash Flow and Statements of Retained Earning.
Generally speaking, what auditors do is to apply relevant audit
procedures, in accordance with GAAP, in the examination of the
underlying records of a business, in order to provide a basis for
issuing a report as an attestation of that company's financial
statements (AICPA, 2002). Such written report is called auditor's
opinion or auditor's report.
Auditors have to acquire and develop their skills and competences
in order to be able to fulfill their mission in a professional manner as
required by their professional organizations. One of the major, and
growing, domains of the skill and competence requirements consists of
information technology [IT] (Kalaba, 2002).
The International Federation of Accountants (IFAC) issued the
International Education Standard (IES) 8 Competence Requirements for
Audit Professionals which indicates that the knowledge content of the
education and development programs should include information technology
(IES8, 2010: par.32). Further, the International Education Practice
Statement (IEPS) 2 Information Technology for Professional Accountants
indicates the IT knowledge and competence requirements in the pre- and
post-qualification stages of candidates and of audit professional.
While the use of information technology (IT) in the business world
has grown exponentially in the past two decades, the extent to which
auditors have adopted IT such as computer assisted auditing techniques
to meet this growth remains an empirical question (Arnold and Sutton
1998; Curtis and Payne 2008; Janvrin et al. 2009). The computerized
assisted auditing is computer tools that extract and analyze data from
computer applications (Braun and Davis 2003). Technology permit auditors
to increase their productivity as well as that of the audit function
(Brazel et al., 2004; Reed et al., 1990). For example, computerized
assisted auditing can automate previously manual audit tests reducing
total audit hours expended. In addition, the computerized assisted
auditing may be used to select sample transactions meeting specific
criteria, sort transactions with specific characteristics, obtain
evidence about control effectiveness, and evaluate inventory existence
and completeness (AICPA, 2006).
One approach to meeting these increased demands is through the use
of audit technologies, which can greatly improve the efficiency (cost)
and effectiveness (quality) of an audit (Banker et al., 2002). While the
current audit environment intensifies the need for firms to employ
techniques that can reduce workload, including those affecting
technology implementation decisions, the culture of public accounting
may create impediments to the adoption of new technologies by audit
teams (Vendrzyk and Bagranoff, 2003).
In the next section, the conceptual framework is presented, and a
set of testable hypotheses is proposed. Methods of the study are then
introduced, which include information about the sample, study measures,
data analysis, and test results. Following a discussion of the results,
implications and limitations are offered.
2. RELENANT LETERATURE ON LEARNING ORIENTATION AND INNOVATION
CAPABILITY, ORGANIZATION PERFORMANCE, ORGANIZATION AND UNCERTAINTY
ENVIRONMENT
The conceptual model shown in Figure 1 was drawn based on the
literature review and use the Contingency theory used in accounting
research design as in accounting information system and auditing (Change
et al., 2003; Nicolaou, 2000) and applied in the context of audit
process in this research. Today technology has allowed the production
and storage of vast amounts of information. Added to this information
has become a key resource in today's business and an ability to
effectively manipulate this information has become vitally important to
management. This technology is relatively new and requires awareness of
the technology, readiness to implement and skills for its effective
usage is developed.
2.1 Accounting Information System Knowledge and Audit Effectiveness
Audit Effectiveness refers to the auditors who are an examination
of a program, function, operation to assess whether the entity is
achieving efficiency and effectiveness in the employment of available
resources and improve profitability of responsibility and accountability
to the professional, increase the value-added service and enhance
working reputation of audit service; which meets or exceeds customer
expectations regarding features and performance (Nicolaou, 2000; Crawell
et al., 1995).
Accounting Information System Knowledge refers to skill or
expertise and knowledge of auditing process about understand and analyze
the concentration of controls in an electronic environment; understand
information systems and understand the use of computer auditing
software. It includes information technology based resources deployment
as knowledge assets and physical information technology infrastructure
(Yang and Guan (2004). Information technology expertise is a role in
enabling auditors to develop new capabilities and skill to accomplish.
More, Information technology expertise is the shared information
technology capabilities that enable the flow of knowledge in an audit
firm and help the auditors to achieve an advantage audit service more
than competitors (Yang and Guan, 2004).
The issue of what IT skills and competences should an auditor
possess have long been debated in the scientific and professional
literature. Cutting et al. (1971: 76-77) considers that auditors should:
understand and analyze the concentration of controls in an electronic
environment; understand information systems and understand the use of
computer auditing software. The authors also stressed the idea that the
knowledge acquired should be differentiated depending on the job
requirements and the complexity of tasks. Further, Jancura (1975: 59)
extended the knowledge requirements of auditors by considering that they
should: have sufficient knowledge of information systems to develop the
audit plan. Borthick et al. (2006) indicated that "accelerating the
acquisition of expertise in auditor's careers is desirable because
of increasing demands for audit efficiency and effectiveness, growing
sophistication of accounting systems" Borthick et al. (2006: 338).
The main result of this article is that there is a correlation between
structured training and the competences of auditors.
As Accounting Information System (AIS), the accounting related
modules of Enterprise Resource Planning (ERP) Systems, ERP have more
dominant and complex. Auditors' abilities to audit around the
system such as perform their audit without evaluating the reliabilities
of the AIS have been significantly reduced. ERP Systems require auditing
capabilities (Lilly, 11997), and a recent study found that AIS knowledge
increases auditors' concern for, and recognition of, audit risk in
an ERP setting (Hunton et al., 2001). The increased concern and
recognition are likely to have implications for auditors for
auditors' risk assessments and substantive planning decisions.
The existing literature examining auditor's knowledge in
accounting information systems. The authors covered aspects such as: the
environment of information systems in financial reporting and assurance;
how financial statements auditors acquire and use information systems
knowledge and finally, the interaction between financial statements
auditors and information systems auditors. We consider that our article
embraces Curtis et al. (2009) call for research on how auditors obtain
information systems knowledge (Curtis et al., 2009: 79). Therefore,
posit the hypothesis as below:
H1: The greater the Accounting Information System Knowledge is, the
more likely that the auditors will achieve Audit Effectiveness.
[FIGURE 1 OMITTED]
2.2 Consequences of Accounting Information System Knowledge
2.2.1 Risk Assessment Competency refers to the auditors must gather
enough competent evidential matter such that the achieved audit risks
are at a level acceptable to the auditor (Hunton et al., 2004). As
technology enables to work different, it provides the opportunity to
work more closely with clients, to better work in teams, to eliminate
waste and perform audit work more effectively and in less time. The
auditors apply the audit risk model during the planning phase of the
audit by making judgments concerning client risks and the scope of audit
risk.
Audit risk is the risk that auditors may unknowingly fail to
appropriately auditor's opinion on financial statements that are
materially misstated. SAS No.88 (AICPA 1996) states that with the
electronic processing of transactions and the reduce reliabilities
associated with the resulting audit evidence; auditors may not be able
to adequately reduce detection risk by increasing the scope of
substantive procedures. The auditors can focus on controls to determine
whether they are designed, and use, to assure the accuracy and
reliabilities of data in electronic form (AICPA 1996).
The auditors use the computerized assisted auditing that will have
automating audit processes and implementing a continuous auditing
framework, auditors are able to focus on areas of highest risk, reduce
audit time, reduce resources, and will gain more confidence in the
effectiveness controls. This will improve overall audit recommendations
to management and satisfy the demand for more reliable, relevant, and
timely information. In Accounting Information System environments,
auditors with greater with Accounting Information System Knowledge will
assess control risk at high level. Therefore, posit the hypothesis as
below:
H2: The greater the Accounting Information System Knowledge is, the
more likely that the auditors will achieve Risk Assessment Competency.
2.2.2 Quality of Auditor Planning Judgments refers to the auditors
can apply the technology to helps auditor to comprehensive analytical
typically include developing expectations from multiple sources to help
identify unusual or unexpected relationships (Borthick et al., 2006).
Auditors have adopted the process auditing approach, which relies on
increased analysis of business strategy, risk, control testing and make
capability of auditing to manage effectively and reduced audit hours in
audit planning, conducting the audit and reporting on the audit finding
(Wright and Wright, 2000; Girard and Farmer, 1999; Bae and Ashcroft,
2004). The prior audit expertise research has shown that domain-
specific knowledge and expertise, determined by the nature of
auditors' experience. The finding suggest that in complex AIS
setting such as ERP Systems , higher level of auditors AIS knowledge and
expertise can improve the quality of their risk assessments, and in
turn, the effectiveness of their substantive planning decisions (Bonner
et al.,1990 ,Hunton et al., 2002). Therefore, posit the hypothesis as
below:
H3: The greater the Accounting Information System Knowledge is, the
more likely that the auditors will achieve Quality of Auditor Planning
Judgments.
2.3 Consequences of Accounting Information System Knowledge and
Audit Effectiveness. 2.3.1 Risk Assessment Competency and Audit
Effectiveness
In Accounting Information System environments, the computerized
assisted auditing has tools and techniques where auditors use to
automate or simplify the audit process and use to facilitate tests of
detail of transactions, account balances and disclosures provide comfort
that the integrity of data sounds and there are controls over that data.
The implementation of new technology such as using computerized assisted
within the auditing environment was expected to be helpful and enhance
the quality of information available in decision making. The
relationship between Information Technology (IT) and audit process
identified significant changes in every phase of audit process as new
technological trend emerged (Bierstaker et al., 2001). Improvements in
the closing process enable more and higher quality analyses,
improvements in the accuracy and quality of financial reports, and
create the potential to generate earlier earnings announcements, audit
reports. The computer systems provide more real-time data and report and
provided general benefits in terms of increased transaction processing
efficiency, more accessible information of a higher quality and greater
support for adhoc reporting (Granlund and Malmi , 2002; Spathis and
Constantinides, 2003). Therefore, posit the hypotheses as below:
H4: The greater the Risk Assessment Competency is, the more likely
that the auditors will achieve Audit Effectiveness.
2.3.2 Quality of Auditor Planning Judgments and Audit Effectiveness
Maletta & Kida (1993) continued this research to investigating
the joint effect of inherent risk levels on auditors' source
reliabilities judgments, reliance on internal audit to reduce planed
audit works. The auditors' source reliability judgments can be
quite complex when elements of the risk environment are explicitly
considers. The auditors' knowledge has strength of the link between
risk factors and planning judgments. Auditor's report expresses the
opinion of an independent expert regarding the degree of reliability
upon of the information presented in the financial statements. In other
words, auditor's report assures the financial statements users,
which normally are external parities such as shareholders, investors,
creditors and financial institutions, of the reliability of financial
statements, which are prepared by the management of the company (Shelton
et al., 2001). The planning stages of risk recognition, risk
assessments, substantive planning. The findings of the study suggest a
positive effect of domain-specific knowledge on the effectiveness of
auditors' planning judgments. For example, more experienced
auditors incorporated the high complexity and judgmental nature of an
accounting system into their planning judgments, while less preference
for effectiveness (Bierstaker & Wright, 200).The level of auditor
accounting information system knowledge or expertise has significantly
influence the auditors' planning judgments in ERP environments
(Hunton et al., 2001).The utilization of this heuristic during planning
judgments can be dependent on the auditors' level of AIS knowledge
(Monroe & NG, 200). Therefore, posit the hypotheses as below:
H5: The greater the Quality of Auditor Planning Judgments is, the
more likely that the auditors will achieve Audit Effectiveness.
3. RESEARCH METHODS
3.1 Sample Selection
The sample data for this study comprise CPAs' in Thailand form
Federation of Accounting Professionals under the Royal Patronage of His
Majesty the King. The sources of data are good sources because research
method provides a sampling framework that possibility sampling and it
can assume that CPAs' in Thailand are members of Federation of
Accounting Professionals under the Royal Patronage of His Majesty the
King. The simple random of CPAs' in Thailand from Federation of
Accounting Professionals under the Royal Patronage of His Majesty the
King was 500 participants who had passed examination subject of the
Computerized Auditing. Deducting the undeliverable from the original 500
mailed, the valid mailing was 28 surveys from which 228 responses were
received. Of the surveys completed and returned, only 354 were usable.
The effective response rate was approximately 48.30 %. According to
Aaker, Kumar and Day (2001), the response rate for a mail survey,
without an appropriate follow-up procedure, is less than 20%. Thus, the
response rate of this study is considered acceptable. Following
Armstrong and Overton (1977) tested for differences between early and
late respondents and found no significant differences, indicating that
non response bias was not a major problem in this study.
3.2 Questionnaire Design and Measurements
3.2.1 Questionnaire Design
The design of the questionnaire of this study is adopted several
from sources of data, including previous instruments developed by other
researchers and the research framework developed from the relevant
literature. Most of the questions were in closed form using a
Likert-type scale, all scored on five-point numerical scale from
1=strongly disagree to 5=strongly agree. A half page empty space at the
end of the questionnaire is provided to give respondents an opportunity
to express anything else that they would like to add. Before using the
data collected, the pre-testing was undertaken (Hunt et al., 1982,
Presser & Blair, 1994, Babbie, 2005). Pre testing was intended to
identify whether there were any ambiguous or unanswerable questions, to
identify whether the wording or layout could be adjusted, whether the
meaning the researcher believed was associated with a question, and how
others perceived it. A draft of the questionnaire was sent to academics
at University of Mahasarakham to examine and approve the construct
validity. Academics are served as respondents and assist in testing the
instrument; comments and suggestions were use to revise the instrument
in terms of readability, validity.
3.2.2 Measurements
The study design of the questionnaire is newly developed from
several sources of data, including previous instruments developed by
other researchers and the research framework developed from the relevant
literature. All of the questions are in closed form using a Likert-type
scale. All are scored on fivepoint numerical scale from 1=strongly
disagree to 5=strongly agree. The measurement analysis emphasizes
explanation of the reliability and validity of new instruments for
measuring these constructs.
3.2.2.1 Dependent Variables
Audit Effectiveness was measured via six items that the employment
of available resources and improve profitability of responsibility and
accountability to the professional, increase the value-added service and
enhance working reputation of audit service; which meets or exceeds
customer expectations regarding features and performance.
3.2.2.2 Independent Variables
Accounting Information System Knowledge was measured using six
items to test skill or expertise and knowledge of auditing process about
understand and analyze the concentration of controls in an electronic
environment; understand information systems and understand the use of
computer auditing software.
Risk Assessment Competency was measured using four items to test
the capability of gather enough competent evidential matter such that
the achieved audit risks are at a level acceptable to the auditor. As
technology enables to work different, it provides the opportunity to
work more closely with clients, to better work in teams, to eliminate
waste and perform audit work more effectively and in less time. The
auditors apply the audit risk model during the planning phase of the
audit by making judgments concerning client risks and the scope of audit
risk.
Quality of Auditor Planning Judgments was measured using four items
to test the auditors can apply the technology to helps auditor to
comprehensive analytical typically include developing expectations from
multiple sources to help identify unusual or unexpected relationships
and auditors can adopted the process accounting information system
approach, which relies on increased analysis of business strategy, risk,
control testing and make capability of auditing to manage effectively
and reduced audit hours in audit planning, conducting the audit and
reporting on the audit finding.
3.3 Validity and Reliability
An assessment of the reliability of the constructs and the validity
of the instrument were conducted to establish the reliability and
validity of the instrument.
Reliability; the most common measure of scale reliability is
Cronbach's Alpha. Prior to conducting factor analysis on the data,
it was considered useful to check the reliability of the scale used to
confirm that the scale used consistently reflects the scale they are
measuring (Field, 2005).
Validity; to identify any remaining issues the test instruments
pre-testing was undertaken (Hunt et al., 1982, Presser & Blair,
1994, Babbie, 2005). Pre testing was intended to identify whether there
were any ambiguous or unanswerable questions, to identify whether the
wording or layout could be improved, whether the meaning the researcher
believed was associated with a question was how others perceived it.
Factor analysis was firstly utilized to investigate the underlying
relationships of a large number of items and to determine whether they
can be reduced to a smaller set of factors. The factor analyses
conducted were done separately on each set of the items representing a
particular scale due to limited observations. With respect to the
confirmatory factor analysis, this analysis has a high potential to
inflate the component loadings. Thus, a higher rule-of-thumb, a cut-off
value of 0.40 was adopted (Nunnally and Berstein, 1994). All factor
loadings are greater than the 0.40 cut-off and are statistically
significant. The reliability of the measurements was evaluated by
Cronbach alpha coefficients. In the scale reliability, Cronbach alpha
coefficients are greater than 0.70 (Nunnally and Berstein, 1994). The
scales of all measures appear to produce internally consistent results;
thus, these measures are deemed appropriate for further analysis because
they express an accepted validity and reliability in this study. Table 1
shows the results for both factor loadings and Cronbach alpha for
multiple-item scales used in this study.
3.4 Statistic Test
This research uses the Ordinary Least Squares (OLS) regression
analysis to test the hypotheses and estimate factors affecting audit
performance. Because both dependent and independent variables in this
study were neither nominal data nor categorical data, OLS is an
appropriate method for examining the hypotheses relationships (Aulakh,
Kotabe and Teegen, 2000). In this research, the model of aforementioned
relationships is as follows:
Equation 1 : AE = [beta].sub.01] + [beta].sub.1] ASK + e
Equation 2 : ASK = [beta].sub.02] + [beta].sub.02]RAC+
[beta].sub.3] QPJ + e
Equation 3 : AE = [beta].sub.03] + [beta].sub.04]RAC+
[beta].sub.5]PJ +e
Where as:
AE = Audit Effectiveness; ASK = Accounting Information System
Knowledge;
RAC = Risk Assessment Competency; QPJ = Quality of Auditor Planning
Judgments.
4. RESULTS AND DISCUSSION
The descriptive statistics and correlation matrix for all variables
are shown in Table 2. The results of OLS regression according to
hypotheses are estimated as shown in Tables 3 to 4. Interaction terms
induced by Technological Change along with the main effects are included
last model.
Table 2 shows the descriptive statistics and correlation matrix for
all variables. With respect to potential problems relating to
multicollinearity, variance inflation factors (VIF) were used to provide
information on the extent to which non-orthogonality among independent
variables inflates standard errors. The VIFs range from 1.01 to 2.15,
well below the cut-off value of 10 recommended by Neter, Wasserman and
Kutner (1985), meaning that the independent variables are not correlated
with each other. Therefore, there are no substantial multicollinearity
problems encountered in this study.
Table 3 and 4 presents the results of OLS regression of the
relationship between the Accounting Information System Knowledge and
Audit Effectiveness via the mediating influences of Risk Assessment
Competency, and Quality of Auditor Planning Judgments in this research
model.
The first set of research hypothesis focused on the relationships
between the Accounting Information System Knowledge and Audit
Effectiveness (Hypothesis 1) are shown in Table 3. The findings indicate
that the Accounting Information System Knowledge ([H.sub.1]: [b.sub.1]
=0.68, p < 0.01) has a positive and significant effect on Audit
Effectiveness. Therefore, Hypothesis 1 is supported.
The second set of the hypotheses concentrated on the relationships
between the Accounting Information System Knowledge and the Risk
Assessment Competency (Hypothesis 2) in Table 3. The evidence indicates
that the Accounting Information System Knowledge (H2: [b.sub.2] = 0.76,
p < 0.01) has a positive and significant effect. Therefore,
Hypothesis 2 is supported.
The relationships between the Accounting Information System
Knowledge and the Quality of Auditor Planning Judgments (Hypothesis 3)
are shown in Table 3. The evidence indicates that the Accounting
Information System Knowledge (H3: [b.sub.3] = 0.68, p < 0.01) has a
positive and significant effect. Therefore, Hypothesis 3 is supported.
The third set of research hypotheses states that the Risk
Assessment Competency and Quality of Auditor Planning Judgments is
expected to positively drive the Audit Effectiveness (Hypotheses 4-5) in
Table 3. The evidence indicates that the Accounting Information System
Knowledge (H4: [b.sub.3] = 0.74, p < 0.01) has a positive and
significant effect. Accounting Information System Knowledge has a strong
influence on Risk Assessment Competency. Therefore, Hypotheses 4 is
supported.
The evidence indicates that the Accounting Information System
Knowledge (H5: [b.sub.3] = 0.76, p < 0.01) has a positive and
significant effect. Accounting Information System Knowledge has a strong
influence on Quality of Auditor Planning Judgments. Therefore,
Hypotheses 5 is supported.
5. CONTRIBUTIONS
5.1 Theoretical Contributions
The research contributes to the extension of contingency theory to
another specialized domain; the external audit domain in Thailand. There
have been a limited number of studies that extend the basic theory
proposed for wider IT adoption/implementation domains, but none have yet
examined the external audit community. This contributes to further
explanation of the impact of certain attributes of knowledge,
experience; skills and expertise user are using the Accounting
Information System by CPAs in Thailand.
5.2 Practical Implications
The model of Accounting Information System Knowledge by CPAs in
Thailand presented in this study could be used as a guide for
implementing of information technology not only by external auditors but
also by other operating. Auditors can developing greater understanding
of the innovation of auditing potential may be to look again into the
computerized assisted auditing training for auditors as part of the
professional development pre and post qualification, greater emphasis on
specialized qualifications in these areas and improved working
relationships' with software providers, to continue the process of
developments of the computerized assisted auditing usefulness and
effectiveness practice. The research, could give implications for
greater regulatory enforcing of the computerized assisted auditing usage
for external auditors. Even though existing standard by the IIA, IAASB
and ISACA provide recommendations and guidance on the use of the
information technology, the decision to use information technology in
practice is subject to the prerogative of the auditors. However,
Information Technology usages remains low in general, and regulators may
need to take the view that a strong recommdation, more direct regulatory
intervention in adaption/implemention decisions, is going to be
necessary to ensure auditors developing wider use of the technology of
auditing, and has other regulatory action to push forward these tools as
best practice illustrations which be helpful in auditing process.
Regarding the first research question stated, we conclude that
financial and internal auditors are acquiring AIS knowledge and
competences needed to perform their mission in a professional manner in
a differentiated way. Financial auditors gain such knowledge by
attending AIS courses organized by their professional organizations,
while internal auditors by attending such courses on their own
initiative.
6. CONCLUSION
In this research, a framework the impact of the Accounting
Information System Knowledge and Audit Effectiveness. The study attempts
to find out if there was change in audit process as a result of the
effectiveness of implementing of auditing technology. The model was
tested using data collected from CPAs in Thailand. The results support
of the hypotheses and reveal that the Accounting Information System
Knowledge is critical for the Audit Effectiveness as shown in Table 3.
The Accounting Information System Knowledge is positively related to
Audit Effectiveness via the mediating influences of the Risk Assessment
Competency, and Quality of Auditor Planning Judgments which confirms the
findings of this research. Hence, the factors in this research model can
be used as on guidance when discussing issues on the implementing of
auditing technology.
7. LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH
This study emphasizes the importance of the Accounting Information
System Knowledge links Audit Effectiveness, but it does not address the
issue of how the Accounting Information System Knowledge should be
carried out. This research has some limitations. First, this study
emphasizes the importance of Accounting Information System Knowledge and
Audit Effectiveness. Future research could identify the antecedents of
the Accounting Information System Knowledge. Secondly, used detailed
field-based studies, longitudinal case studies, and case surveys and to
test different audit environmental influences to each of the factors
identified in the model in these difference contexts.
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Aukkaradej Chaveerug, Mahasarakham University, Thailand
Dr. Aukkaradej Chaveerug earned his Ph.D. (Accounting) at Faculty
of Accountancy and Management, Mahasarakham University, Thailand in
2009. Currently he is a Lecturer of Accounting Major at the Faculty of
Accountancy and Management, Mahasarakham University, Thailand
TABLE 1
RESULTS OF MEASURE VALIDATION
Items Factor Cronbach
Loadings Alpha
Audit Effectiveness 0.94-0.96 0.94
Accounting Information System Knowledge 0.84-0.92 0.91
Risk Assessment Competency 0.81-0.84 0.83
Quality of Auditor Planning Judgments 0.88-0.90 0.88
TABLE 2
DESCRIPTRIVE STATISTICS AND CORELATION MATRIX
Variables AE ASK RAC QPI
Mean 3.91 3.84 3.82 3.78
Audit Effectiveness
Accounting Information System 0.66 **
Knowledge
Risk Assessment Competency 0.74 ** 0.72 **
Quality of Auditor Planning 0.76 ** 0.76 ** 0.74 **
Judgments
* p<.05, ** p<.01
TABLE 3
RESULTS OF OLS REGRESSION ANALYSIS (a)
Independent variables Dependent Variable
AE RAC QPJ AE
Accounting Information 0.68 *** 0.76 ** 0.68 **
System Knowledge (ASK)
(0.09) (0.05) (0.02)
Risk Assessment Competency 0.74 **
(RAC)
(0.07)
Quality of Auditor Planning 0.76 ***
Judgments (QPJ)
(0.07)
Adjusted [R.sup.2] 0.66 0.72 0.66 0.72
*** p<.01, (a) Beta coefficients with standard
errors in parenthesis.
AE = Audit Effectiveness; ASK = Accounting
Information System Knowledge;
RAC = Risk Assessment Competency; QPJ = Quality
of Auditor Planning Judgments.