Abstract 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 on common attributes of audit differences that have been studied in previous papers. Consistent with prior studies, the results of this study indicate that the majority of audit differences (misstatements) arise due to incorrect computations, differences in management and auditor judgment, faulty initial identification and processing of transactions, and overworked accounting personnel. Likewise, audit differences related to control attributes are usually associated with inadequately skilled personnel, improper or inadequate independent verifications, or improper documents and records; audit differences are rarely associated with inadequate controls over assets or records. This study reports additional findings that incorrect manual computations, the recording of exchange documents, incorrect application of internal controls, and inadequate internal controls are more likely to be sources of problems when information systems are computerized than when they are not. Finally, very few of the audit differences in this study were associated in any way with failures in the computerized system. This information should be useful for auditor planning in computerized environments and highlights the need to adequately consider the nature and reliability of such systems in the planning stages of an engagement.
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