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Article
An Exploration of Bank Confirmation Process Automation: A Longitudinal Study
Journal of Information Systems
  • Paul Caster
  • Randal J. Elder
  • Diane J. Janvrin, Iowa State University
Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
10-14-2020
DOI
10.2308/ISYS-19-038
Abstract

This exploratory study examines automation of the bank confirmation process using longitudinal data set from the largest third-party U.S. confirmation service provider supplemented with informal interviews with practitioners. We find a significant increase in electronic confirmation use in the U.S. and internationally. Errors requiring reconfirmation were less than two percent of all electronic confirmations. Errors made by auditors were almost five times more likely than errors by bank employees. Most auditor errors involved use of an invalid account number, although invalid client contact, invalid request, and invalid company name errors increased recently. Big 4 auditors made significantly more confirmation errors than did auditors at non-Big 4 national firms. Error rates and error types do not vary between confirmations initiated in the U.S. and those initiated internationally. Three themes emerged for future research: authentication of evidence, global differences in technology use, and technology adoption across firms of different sizes.

Comments

This accepted article is published as Caster, P., R. J. Elder, and D. J. Janvrin. An Exploration of Bank Confirmation Process Automation: A Longitudinal Study, Journal of Information Systems, October 14 2020 ISYS-19-038. doi: 10.2308/ISYS-19-038. Posted with permission.

Copyright Owner
AAA Accounting Information Systems
Language
en
File Format
application/pdf
Citation Information
Paul Caster, Randal J. Elder and Diane J. Janvrin. "An Exploration of Bank Confirmation Process Automation: A Longitudinal Study" Journal of Information Systems (2020)
Available at: http://works.bepress.com/diane_janvrin/17/