The Adoption of Risk Based Audit Approach in the Independent Audit Firms: A Study of Case of Vietnam

Le, Thi Tam; Nguyen, Thi Mai Anh

doi:10.13106/jafeb.2020.vol7.no2.89

Cited by 5 publications

(4 citation statements)

References 14 publications

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“…The findings indicated that the BRA implementation cost (H1) is an obstacle to the widespread use of the BRA methodology in the Yemeni context. This finding is consistent with those of Abdullatif and Al-Khadash 10 and Le and Nguyen, 44 who found that the high cost of audits based on BRA prevented the widespread application of this methodology in Jordan and Vietnam.…”

Section: Discussion Of Resultssupporting

confidence: 91%

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The Influence of the Business Risk-Based Auditing Application on the Audit Process: An Empirical Investigation in the Yemeni Context.

Esmail

Haque

2023

Journal of Business Strategy, Finance and Management

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This paper examines the impact of the modern audit approach, "Business risk auditing (BRA)," on the audit process. The cost of the BRA application and the impacts of this approach on the analytical procedures, internal controls, and audit evidence are the primary issues of this study. An empirical design using a structured questionnaire has been adopted to collect the data required to test the study’s hypotheses. The data was analyzed using the PLS-SEM technique, a hybrid of the partial least squares that is based on structural equation modelling. The study found that the high costs resulting from the BRA approach represent significant obstacles to implementing this methodology in the Yemeni audit context. However, auditors in Yemen believe that applying the BRA approach positively impacts the conduct of audits. The findings revealed a significant influence of the BRA approach on each audit procedure and audit quality in general. The present study has practical implications where it could raise the Yemeni auditors' awareness of the BRA approach, which is directly related to many International Auditing Standards (IAS). Therefore, BRA adoption will also assist in meeting ISAs' prerequisites. In addition to being the first study that looks at the advanced audit methods in Yemen, it is one of the few to examine the spread of BRA in developing nations.

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Section: Discussion Of Resultssupporting

confidence: 91%

“…The findings of this study are in line with those of previous research. 10,13,44 . However, the results contradicted those of some of the cited sources, specifically, Al-Nodel & Turley 45 and Essa 27 who found that the cost of audits did not prevent the BRA approach from being implemented in KSA or Libya.…”

Section: Conclusion Limitations and Recommendationsmentioning

confidence: 99%

The Influence of the Business Risk-Based Auditing Application on the Audit Process: An Empirical Investigation in the Yemeni Context.

Esmail

Haque

2023

Journal of Business Strategy, Finance and Management

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“…Positive statistical significance was shown between risk-based audit planning and SACCOs' bottom lines. According to Le and Nguyen (2020), six variables affect RBAA adoption: auditor competence, technological progress, audit fees, auditor motivation, audit duration, and client risk. Of them, the competence of auditors and advances in technology have the greatest and most beneficial effects on RBAA's spread.…”

Section: Pearson Correlationmentioning

confidence: 99%

Influence of Internal Audit Risk Planning Practices on the Financial Performance of SACCOs in the Western Region of Kenya

Simbiri,

Musiega,

Edwin

2023

AJERNET

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To better monitor and control risks, businesses may use risk-based internal audit (RBIA) practices. It also increases transparency and honesty in the financial reporting process. The Western Region and Kenyan Deposit Taking Savings and Credit Cooperatives (DT-SACCOs) are the primary subjects of this research. Despite having an audit department in place, some DT-SACCOs encounter difficulties in auditing their operations, such as a lack of audit evidence (too weak or incorrect) that makes it difficult for the auditor to make the proper choice or generate accurate findings. An internal audit that takes risk into account may help a company prioritize its resources where they will have the most impact. This allows the SACCO to boost its financial performance and provide better reporting to its members. This research looked at how risk-based internal audits affected the profitability of DT-SACCOs in Kenya's Western Region. Based on three theories - the Positive Accounting Theory of internal auditing risk planning, the Contingency Theory of risk management, and the Agency Theory of internal audit capacity—this descriptive study was conducted. Fifteen DT-SACCOs in the Western Region of Kenya will be the focus of the study. Primary data was collected from DT-SACCO members, with a response rate of five per SACCO. The data on financial performance was verified using secondary sources of information. Regression analysis shows that risk-based audit planning had a statistically significant effect on the financial performance of DT-SACCOs in the Western area (t = 5.626, p<0.05). The study recommended that SACCO management practice risk-based auditing with adequate planning from all stakeholders to enhance transparency and accountability. Furthermore, the management should ensure there is timely action on audit queries.

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“…Professional knowledge includes professional skills, career skills, and knowledge of computers, which are important criteria of employees (Huang & Lin, 2011;Laker & Powell, 2011). Le and Nguyen (2020) used primary and secondary data collected from 2018 to 2019. The results from the interview survey showed that audit firms were aware of the advantages of adopting RBAA.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of Auditors’ Professional Skills in Local Auditing Firms in Hanoi

Nguyen¹,

Le²,

Nguyen³

et al. 2020

JAFEB

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In recent years, the quality of auditing human resources in domestic auditing firms in Hanoi has certain limitations in which professional skills of auditors have not been given adequate attention. The number of customers at local auditing firms is forecast to increase gradually. Therefore, the quantity and quality of auditors need to be improved to meet requirements of the workload. Data for this research were collected through surveying 120 customers of domestic auditing firms in Hanoi on the 5-point Likert scale. Based on the collected data, we employ both qualitative and quantitative methodology along with some tools such as descriptive statistics, Cronbach's Alpha, T-test and ANOVA to analysis, evaluate and measure the professional skills of auditors in local auditing firms in Hanoi. The results show that the professional skills of auditors in auditing firms include 17 attributes. The majority of respondents show appreciation for the professionalism and professional competence of auditors, while, they think that critical thinking skills and creative thinking skills are still limited and need to be improved. These findings, not only help auditors to improve themselves, but also provide solutions for managers of domestic auditing firms in Hanoi to enhance quality of audited human resources.

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The Adoption of Risk Based Audit Approach in the Independent Audit Firms: A Study of Case of Vietnam

Cited by 5 publications

References 14 publications

The Influence of the Business Risk-Based Auditing Application on the Audit Process: An Empirical Investigation in the Yemeni Context.

The Influence of the Business Risk-Based Auditing Application on the Audit Process: An Empirical Investigation in the Yemeni Context.

Influence of Internal Audit Risk Planning Practices on the Financial Performance of SACCOs in the Western Region of Kenya

Evaluation of Auditors’ Professional Skills in Local Auditing Firms in Hanoi

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