The use of control self-assessment by independent auditors

Control self-assessment (CSA) is an effective tool for improving a business' internal controls and business processes. CSA activities also have the potential to improve the efficiency and effectiveness of independent financial statement audits in response to changing demands on independent auditors. While independent auditors can benefit from CSA activities, little evidence indicates the extent to which independent auditors avail themselves of these benefits. The authors investigated the uses of CSA by independent auditors, as well as perceptions about the value of independent-auditor involvement with CSA activities. Although auditors can use CSA to improve the effectiveness of their internal control evaluations, this study revealed very low CSA utilization levels by independent auditors. Companies and their independent auditors both have a role to play in increasing CSA usage. The data strongly suggest that enhanced auditor training and effective two-way communication between companies and their independent auditors could lead to increased CSA use by independent auditors. Such measures would likely result in more-effective and more-efficient audits that would benefit all parties.