Auditing Section Research Summaries Space

A Database of Auditing Research - Building Bridges with Practice

This is a public Custom Hive  public

Posts

  • The Auditing Section
    Transforming audit technologies: Business risk audit...
    research summary posted May 4, 2012 by The Auditing Section, tagged 06.0 Risk and Risk Management, Including Fraud Risk, 06.05 Assessing Risk of Material Misstatement 
    Title:
    Transforming audit technologies: Business risk audit methodologies and the audit field
    Practical Implications:

    The findings of the study emphasize the importance of considering history when understanding how changes in the auditing profession occur (such as the emergence of the BRA, which the authors explore in this study).  Though audit firms have stated that they initially implemented BRA methodologies in response to the challenge of the “information age” and corporate clients’ assurance needs, the authors propose that BRA served as a legitimacy tool for the auditing profession, changed the identity of accounting firms, and enabled audit firms to maintain broader areas of expertise.  

    Citation:

    Robson, K., Humphrey, C., Khalifa, R., and J. Jones. 2007. Transforming audit technologies: Business risk audit methodologies and the audit field. Accounting, Organizations, and Society 32(5): 409 – 438.

    Home:
    home button
  • The Auditing Section
    The business risk audit: Origins, obstacles and...
    research summary posted May 3, 2012 by The Auditing Section, tagged 06.0 Risk and Risk Management, Including Fraud Risk, 06.05 Assessing Risk of Material Misstatement 
    Title:
    The business risk audit: Origins, obstacles and opportunities
    Practical Implications:

    This article, combined with the balance of the articles in this journal edition, provides a comprehensive background on the history, practice, and current trends related to the business risk audit approach.  Specifically, this article provides a theoretical background on the growth of business risk audit approach, with special attention towards its potential strengths and limitations.  This discussion should be of interest to any auditor seeking to obtain additional theoretical perspectives in this growing area.

    Citation:

    Knechel, W.R. 2007.  The business risk audit: Origins, obstacles and opportunities. Accounting Organizations and Society 32(4-5): 383-408.

    Home:
    home button
  • The Auditing Section
    The Impact of Roles of the Board on Auditors’ Risk A...
    research summary posted April 16, 2012 by The Auditing Section, tagged 06.0 Risk and Risk Management, Including Fraud Risk, 06.05 Assessing Risk of Material Misstatement, 13.0 Governance, 13.01 Board/Audit Committee Composition 
    Title:
    The Impact of Roles of the Board on Auditors’ Risk Assessments and Program Planning Decisions
    Practical Implications:

    The results of this study suggest that auditors do take into consideration board roles in their control risk assessments.  In addition, both dimensions of board structure are suggested to affect assigned audit hours. These findings provide additional insights into whether auditors are able to integrate adequately the board roles into their audit planning.  The results have implications for audit firms in better understanding how auditors incorporate the board roles into their risk assessments and audit planning.  Further, the results suggest that, in line with PCAOB AS 2, auditors rely on a more complex set of factors than simply the monitoring role of boards. 

    Citation:

    Cohen, J.C., G. Krishnamoorthy, and A.M. Wright. 2007.  The Impact of Roles of the Board on Auditors’ Risk Assessments and Program Planning Decisions.  Auditing: A Journal of Practice and Theory 26 (1): 91-112.

    Home:
    home button
  • The Auditing Section
    Auditor Risk Assessment; Insights from the Academic...
    research summary posted April 12, 2012 by The Auditing Section, tagged 06.0 Risk and Risk Management, Including Fraud Risk, 06.01 Fraud Risk Assessment, 06.05 Assessing Risk of Material Misstatement, 06.08 SAS No. 99 Brainstorming – effectiveness 
    Title:
    Auditor Risk Assessment; Insights from the Academic Literature
    Practical Implications:

    This article provides a very informative summary of current research related to the risk assessment process that supports the audit.  By outlining both general audit risk insights as well as fraud risk insights, the authors provide a clear and informative summary that should be of use to any audit firm attempting to better understand the current theoretical and practical research related to this emerging area.  Finally, by utilizing the PCAOB questions, the discussion also provides insights directly relevant to the current regulatory process.

    Citation:

    Allen, R.D., D.R. Hermanson, T.M. Kozloski, and R.J. Ramsay. 2006.  Auditor Risk Assessment: Insights from the Academic Literature.  Accounting Horizons 20(2): 157-177.

    Home:
    home button
  • The Auditing Section
    The halo effect in business risk audits: Can strategic risk...
    research summary posted July 17, 2011 by The Auditing Section, tagged 06.0 Risk and Risk Management, Including Fraud Risk, 06.05 Assessing Risk of Material Misstatement 
    Title:
    The halo effect in business risk audits: Can strategic risk assessment bias auditor judgment about accounting details?
    Practical Implications:

    The results of this study have an impact on the understanding strategic risk assessments.  Strategic risk assessments may reduce auditors’ sensitivity to inconsistent fluctuations in account balances.  This reduced sensitivity may cause auditors to underestimate the risks of financial misstatement when lower assessments of strategic risk are made in the early stages of an audit.    

    Citation:

    O’Donnell, E. and J.J. Schultz, Jr. 2005.  The halo effect in business risk audits: Can strategic risk assessment bias auditor judgment about accounting details?  The Accounting Review 80 (3): 921-939.

    Home:
    home button

Filter by Type

Filter by Tag