An internal auditing innovation decision: statistical sampling

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 from Rogers’ <i>Innovation Diffusion</i> model (Everett Rogers, <i>Diffusion of Innovations</i>, 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 usable 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.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Business

Department dc:contributor.department

Business

Grantor dc:publisher

Virginia Polytechnic Institute and State University

Year dc:date.issued

1988

Author dc:creator

• Habegger, Jerrell Wayne

Chair dc:contributor.committeechair

• Beams, Floyd A.

Committee members dc:contributor.committeemember

• Kubin, Konrad W.
• Hicks, James O. Jr.
• Johnson, Dana J.
• Ostrowski, Barbara A.

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en_US

Handle dc:identifier.uri

http://hdl.handle.net/10919/53522

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/53522