H2: Industry-matched auditors make

H2: Industry-matched auditors make more procedure-changes than do industry- mismatched auditors. When customizing inherited audit programs and time budgets to a client's current circumstances, auditors are generally concerned not only with audit effectiveness, but also with audit efficiency. Auditors will want to minimize any perceived inefficiency in the planned audit procedures and time budgets.6 However, perceived inefficiencies in the planned audit procedures and time budgets are likely to be inversely related to the auditors' risk assessments because as audit risk increases, more audit work generally is required. Thus, ceteris paribus, the higher the assessed audit risks, the lower the assessed inefficien- cies in the planned audit procedures and time budgets. Audit procedures, however, vary in their effectiveness and importance in addressing audit risk. For auditors to make procedure-changes, staff-changes, and hour-changes that are sensitive to their audit risk assessments (i.e., more audit resources are assigned as perceived audit risk increases), they need to evaluate the audit risks as well as the rele- vant audit procedures to address the risks. Both steps require audits.ors to possess extensive (business-environment and auditing) knowledge of the client's industry. Consequently, I posit that industry-matched auditors' procedure-changes, staff-changes, and hour-changes are more sensitive to their risk assessments than are those of industry-mismatched auditors.