An empirical investigation of the relationship between the computerization of accounting systems and the incidence and size of audit differences

Audits utilizing computerized information systems are more likely to produce misstatements than audits that do not use such systems. Misstatements are not due to computer failures, but are attributable to incorrect manual computations, insufficient internal controls and misapplication of internal controls. These findings were in addition to traditional factors such as faulty judgment.
SUMMARY The decade of the 1980s saw a surge in research examining the empirical characteristics of audit differences detected in audit engagements. This paper examines the differential impact of computerization [...]