When an auditor's effort is not observable, auditor liability becomes an important mechanism for motivating the auditor to exert an appropriate level of audit effort. However, while the presence of legal liability helps to preserve the value of an audit to investors, some aspects of the...

Describes a set of tests designed to evaluate the performance of CAPEX, an expert system designed to generate substantive audit program plans for the revenue/receivable/receipts cycle of manufacturing, retailing, and banking firms. Better performance of CAPEX in comparison with human experts;...