Framework for Effective Use of Checklists in Auditing

While results of some studies indicating dysfunctional outcomes of audit checklists, other research confirm the benefits of checklists in auditing. Regarding the contrast between some of the negative views of checklists expressed in the extant audit literature and a considerable body of evidence on the successful use of checklists in many other fields, identifying the affecting factors on audit checklists effectiveness is important. Literature review of checklist research in auditing and other fields suggests that improvements to checklist design and to checklist application methods can make checklists more effective. Regarding the importance of audit checklists effectiveness, in this article based on a review and synthesis of the literature on the use of checklists in auditing and other fields, a framework for effective use of checklists that incorporates the nature of the audit task, checklist design, checklist application, and contextual factors were offered. This article, first present concepts of red flags, checklists, their benefits and drawbacks and the types of checklists. The effectiveness of checklists is then considered. Finally, conclusion and several ways to enhance effectiveness of checklists are given.