An Exploration of Bank Confirmation Process Automation: A Longitudinal Study

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2020-10-14
Authors
Caster, Paul
Elder, Randal
Janvrin, Diane
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Janvrin, Diane
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Accounting

The Department of Accounting was founded in 1984 in the College of Business Administration (later College of Business).

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The Department of Accounting seeks to provide a mastery of basic accounting concepts and encouraging critical and creative thinking about accounting problems. It is intended both for internal users (management) and external users (investors, creditors, government officials, the general public).

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1984–present

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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.

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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.

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Wed Jan 01 00:00:00 UTC 2020
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