HABEGGER, JERRELL WAYNE; PHD
VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY, 1988
BUSINESS ADMINISTRATION, ACCOUNTING (0272)
In planning an effective and efficient audit examination, the auditor has to
choose appropriate auditing
technologies and procedures. This audit choice problem has been explored from
several perspectives.
However, it has not been viewed as an innovation process. This dissertation
reports the results of an
innovation decision study in internal auditing. Hypotheses of associations between
the internal auditor's
decision to use statistical sampling and the perceived characteristics of statistical
sampling are derived for
Rogers' Innovation Diffusion model (Everett Rogers, Diffusion of Innovations,
1983). Additional
hypotheses relating the decision to use statistical sampling to personal and
organizational characteristics
are derived from the innovation adoption and implementation research literature.
Data for this study were
gathered by mailing a questionnaire to a sample of internal audit directors.
Incorporated into the
questionnaire are several scales for measuring (1) innovation attributes, (2)
professionalism, (3)
professional and organizational commitment, (4) management support for innovation,
and (5) creativity
decision style. The useable response rate was 32.5% (n = 260). The primary finding
of this study is that
the extent of use of attributes, dollar unit, and variables sampling techniques
is positively associated with
the respondents' perceptions of their relative advantage, trialability, compatibility
and observability, and
negatively associated with the techniques' perceived complexity. A secondary
finding is that there is no
overall association between the extent of use of statistical sampling by the
internal auditors and their (1)
professionalism, (2) professional and organizational commitment, (3) decision
style, and (4)
organizational support for innovation. Further exploration using multiple regression
and logistic
regression analyses indicate that several of the personal and organizational
characteristics add to the
ability of the regression models to explain the extent of use of statistical
sampling. Evidence that
organization types do have an effect upon the innovation decision process is
presented. The study
concludes by discussing its implications for understanding the innovation decision
process of internal
auditors, for designing and managing future innovation processes in auditing,
and for further research
into audit choice problems and innovation decisions of auditors and accountants.
Social
Systems Simulation Group
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