Evidential Effort And Risk Assessment In Auditing

Blay, Allen D.; Kizirian, Tim; Sneathen, L. Dwight

doi:10.19030/jber.v6i9.2469

Cited by 6 publications

(9 citation statements)

References 12 publications

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“…Blay et al (2008) believe that the ARM as a conceptual model promotes a risk, focused approach for allocation of audit procedures. This model has become an extremely important element in auditing (Quadackers et al 1996).…”

Section: Audit Risk Modelmentioning

confidence: 99%

“…The risk assessments affect the nature, timing, extent of audit procedures and evidence collected (Colbert, 1996;Helliar et al,1996;Blay et al 2008;Chang et al 2007;Iranian Auditing Standard No 20;Bedard et al, 1999). Therefore, the determination of critical risk factors could help auditors in an audit case.…”

Section: Introductionmentioning

confidence: 99%

“…The reason is the problem in assessing risks by auditors. However, authoritative guidance on risk assessments clarifies some audit characteristics, which should be considered while assessing risks, it does not clearly indicate the manner in which these factors are to be identified and weighted in the assessment (Blay et al, 2008;SAS 47;Iranian auditing standards No. 20, 31-5, 33).…”

Section: Introductionmentioning

confidence: 99%

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Application of Delphi method for determining the affecting factors upon audit risk model

Hajiha¹

2012

MSL

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The assessment of risks in an audit work could directly influence the costs, timing, and strategies as well as audit quality. The purpose of this paper is to identify the critical affecting factors on risks proposed in Audit Risk Model (ARM), in audit environment of Iran. In the present research, the Delphi Method consists of 60 audit partners and managers is employed. The panel consists of two equally divided groups, one from audit organization, a governmental organization, and the other from private audit firms. We employ two rounds of Delphi and 58 critical risk factors extracted from auditing literature and Iranian auditing standards and present them to the experts. There are 43 factors categorized as important factors to assess the risks in ARM. The results are considerable in an Iranian audit environment, findings show the most important factors are in inherent risk factors. Finally, we made a comparison with a similar study in Taiwan. Differences indicate that in professional judgment issues like risk assessment, the consideration of particular culture and environment could help enhance the precision of assessments, especially in assessing control risk factors.

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Section: Audit Risk Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Application of Delphi method for determining the affecting factors upon audit risk model

Hajiha¹

2012

MSL

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“…ARM is regarded as a normative model for helping auditors in the process of judgment of auditee risks (Blay et al, 2008) …”

Section: Traditional Armmentioning

confidence: 99%

“…The output of this FIS is the levels of CR that can be qualitative or quantitative after defuzzification. Via multiplying of the amounts of IR and CR, we can calculate material misstatement risk (MMR) (ISAs, Iranian Audit Standard, section 20, 2007;Iranian Audit Procedure, 2000;Blay et al, 2008): MMR = IR * CR Based on traditional ARM given in Eq. (1), we can simply calculate detection risk (DR).…”

Section: Control Risk Inference Enginementioning

confidence: 99%

Fuzzy audit risk modeling algorithm

Hajihaa¹

2011

msl

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Fuzzy logic has created suitable mathematics for making decisions in uncertain environments including professional judgments. One of the situations is to assess auditee risks. During recent years, risk based audit (RBA) has been regarded as one of the main tools to fight against fraud. The main issue in RBA is to determine the overall audit risk an auditor accepts, which impacts the efficiency of an audit. The primary objective of this research is to redesign the audit risk model (ARM) proposed by auditing standards. The proposed model of this paper uses fuzzy inference systems (FIS) based on the judgments of audit experts. The implementation of proposed fuzzy technique uses triangular fuzzy numbers to express the inputs and Mamdani method along with center of gravity are incorporated for defuzzification. The proposed model uses three FISs for audit, inherent and control risks, and there are five levels of linguistic variables for outputs. FISs include 25, 25 and 81 rules of if-then respectively and officials of Iranian audit experts confirm all the rules.

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Fraud Risk Factors that Affect the Audit Program Plan: The Case of Kurdistan Region, Iraq

Alssabagh

2020

UKHJSS

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This paper aims to identify the most frequent fraud risk factors that affect the nature, timing, and extent of planned audit procedures. The perceptions of both international and local external auditors in the Kurdistan Region, Iraq, were investigated. In general, it was found that the respondents were more interested in assessing fraud risk factors related to misappropriation of assets (84.61%) compared with those related to fraudulent financial reporting (75.43%). Stepwise regression analysis indicates a positive and significant effect of each fraud risk factor related to fraudulent financial reporting that resulted from incentives or pressures and attitudes or rationalization, and the fraud risk factors related to the misappropriation of assets that resulted from attitudes or rationalization on the nature, timing, and extent of the planned audit procedures. However, other fraud risk factors in the study model did not show a significant effect on the audit program plan. The findings of this paper contribute to the existing literature in the area of fraud risk assessment and its effect on planning audit programs in eastern developing countries such as the Kurdistan Region, Iraq.

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Evidential Effort And Risk Assessment In Auditing

Cited by 6 publications

References 12 publications

Application of Delphi method for determining the affecting factors upon audit risk model

Application of Delphi method for determining the affecting factors upon audit risk model

Fuzzy audit risk modeling algorithm

Fraud Risk Factors that Affect the Audit Program Plan: The Case of Kurdistan Region, Iraq

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