Evidence from Auditors about the Causes of Inaccurate Budgets: Do Clients Cause Budget Overruns?

Steve Buchheit, William R. Pasewark, Jerry R. Strawser

Research output: Chapter in Book/Report/Conference proceedingChapter

2 Scopus citations

Abstract

The goal of this study is to identify primary drivers of audit budget inaccuracy. Our results show a positive association between using the budget for evaluative purposes and favorable (or less unfavorable) budget variances. In addition, despite the fact that our sample is comprised of continuing audit engagements, weak client controls and relatively uncooperative clients have the greatest impact on unfavorable budget variances. Our results suggest audit budgets insufficiently accommodate client-controlled factors.

Original languageEnglish
Title of host publicationAdvances in Accounting
EditorsPhilip Reckers, Salvador Carmona, Govind Iyer, Eric Johnson, Loren Margheim, Richard Morton
Pages45-66
Number of pages22
DOIs
StatePublished - 2006

Publication series

NameAdvances in Accounting
Volume22
ISSN (Print)0882-6110

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    Buchheit, S., Pasewark, W. R., & Strawser, J. R. (2006). Evidence from Auditors about the Causes of Inaccurate Budgets: Do Clients Cause Budget Overruns? In P. Reckers, S. Carmona, G. Iyer, E. Johnson, L. Margheim, & R. Morton (Eds.), Advances in Accounting (pp. 45-66). (Advances in Accounting; Vol. 22). https://doi.org/10.1016/S0882-6110(06)22003-0