（1997）Audit Automation：The Use of Information Technology in the Planning, Controlling and Recording of Audit Work.docVIP

Audit Automation: The Use of Information Technology in the Planning, Controlling and Recording of Audit Work Stuart Manson, Sean McCartney and Michael Sherer Executive Summary The downward pressure on audit fees continued through the 1980s and into the 1990s fuelled by the increasing competition in the audit market and the increasing attention being paid by clients to the audit fee charged. These twin factors focused auditors attention on performing audits more efficiently whilst maintaining their effectiveness. The sought after gains did not appear to be achievable by making changes in the audit techniques. However, there was a systematic attempt to utilise information technology (IT) within the existing auditing framework. Therefore accountancy firms, particularly the larger ones, introduced IT to replace and supplement at least some of the audit tasks performed manually, for example, checklists relating to the Companies Act and accounting standards, the use of templates for analytical review and the preparation of standard documentation. It is within this context that the introduction of IT in the planning, controlling and recording of audit work was investigated. This investigation was undertaken in the period 1993 to 1995 and involved two stages. Stage 1 was a postal survey of the 40 largest accountancy firms to elicit factual information relating to the use of IT. The accountancy firms in the survey were classified as follows: Big Six; Medium-sized (ranked 7-20); and Other (ranked 21-40). Stage 2 consisted of interviews with all levels of professional staff at four of the Top 20 accountancy firms. The interviews explored in greater detail not only how IT was used in the planning, controlling and recording of audit work but also the major limitations and problems which the four firms had encountered. For the purpose of this report the use of IT in the planning, controlling and recording of audit work will be referred to as audit automation. Survey and Interv