The Client Risk and The Audit Planning: Influence of Acceptance of Audit Engagement

Suryani, Deby; Sitorus, Tigor

doi:10.21632/irjbs.10.3.183-198

“…Selvina's research (2017) revealed that client business risk had no effect on client acceptance decisions. Suryani & Sitorus (2018) found that client risk directly affects the acceptance of the audit engagement in a positive and significant way. When accepting an audit engagement, auditors must have professional responsibilities to public, and members of the accounting profession by maintaining independence, integrity, and objectivity where the client's interests must be met with professional competence and attention, therefore the decision to accept an audit client should not be taken lightly.…”

Section: Jea17mentioning

confidence: 94%

Untitled

2023

JEA17

0

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The study was conducted to examine and analyze whether audit risk, auditor's independence, auditor's business risk, and client's business risk affect the decision to audit engagements acceptance. Quantitative analysis conducted with data collection techniques using questionnaires. 97 respondents were partners of accounting firms in Surabaya. The results of this study are audit risk, auditor independence, and client's business risk have a significant effect on audit engagement acceptance. While the auditor's business risk has a positive but insignificant effect on audit engagement acceptance.

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“…Selvina's research (2017) revealed that client business risk had no effect on client acceptance decisions. Suryani & Sitorus (2018) found that client risk directly affects the acceptance of the audit engagement in a positive and significant way. When accepting an audit engagement, auditors must have professional responsibilities to public, and members of the accounting profession by maintaining independence, integrity, and objectivity where the client's interests must be met with professional competence and attention, therefore the decision to accept an audit client should not be taken lightly.…”

Section: Jea17mentioning

confidence: 94%

Factors Affecting Audit Engagement Decision

Fibriani¹

2022

JEA17

0

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ABSTRACT The study was conducted to examine and analyze whether audit risk, auditor’sindependence, auditor’sbusiness risk, and client's business risk affect the decision to audit engagementsacceptance. Quantitative analysis conducted with data collection techniques using questionnaires. 97 respondents were partners of accounting firms in Surabaya. The results of this study are audit risk, auditor independence, and client’s business risk have a significant effect on audit engagement acceptance. While the auditor’sbusiness risk has a positive but insignificant effect on audit engagement acceptance. Keywords: Audit Risk, Auditor independence, AuditorBusiness Risk, Client Business Risk and Audit Engagement Acceptance

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“…We have used both primary and secondary data sources to gather data that serve as good evidence for descriptions (Polkinghorne, 2005;Rahman, 2015;Suryani & Sitorus, 2018;Nekmahmud & Rahman, 2018). Primary sources for this research are the direct interview from 9 employees (Male 7, female 2), 24 middle-level management (Male 21, female 3), and 12 top level personnel (Male 12, female 0) of the specified 45 garments factory on the individual random basis.…”

Section: Methodsmentioning

confidence: 99%