Transforming audit technologies: Business risk audit methodologies and the audit field

Application of Business Risk Auditing among Audit Firms in Western Region, Kenya

“…This, coupled with Global economic crisis of 2008 triggered by Lynn Brothers Bank and the related insurance company, the American international group (AIG) led to a big debate about the role of auditors, and shocked trust Indexed African Journals Online: www.ajol.info in the audit profession leading to dissatisfaction (Abdullah & Al-Araj 2011). One such milestone in the auditing profession in bid to bridge the challenges is the development of Business Risk Audit Approach, (BRA), (Robson et al, (2007;Vilsanoui & Serban, 2010;Abdullatif & Al-Khadash 2010).…”

Insights on risk assessment in performance audit

“…Such developments in majority of cases were related to the transition from an audit methodology based on financial statements risk to the methodology based on the performance process risk. The analysis of scientific literature (Eilifsen et al, (2001); Robson et al, (2007)) showed that the previously existing methodology did not require the auditor to acquire any high-level understanding about the strategy of the activities (business) of the auditee; though it is specifically the strategy that causes the appearance of the activity (business) risks. The knowledge about the business of the client was used to alleviate the risk potentially arising from incorrect decisions made by the auditor.…”

“…The new approach is specific in the sense that the process of risk management involves managers and employees of all levels. Table 1 summarises the principal aspects of the transformation of the approach towards risk based on the results of the research carried out by Robson et al, 2007, Risk assessment is a continuous and permanent process. Risk identification and management of controls is the responsibility of the accounting, treasury and the internal audit divisions.…”

“…Source: adapted from K. Robson et al (2007) The new approach towards risk assessment and management constitutes an integrated, strategic assessment and management of the organisation-wide risk. The concept of risk includes any event or a phenomenon that may adversely affect the ability of a company to attain the objectives of its activities and to successfully implement its strategy.…”

“…The audit risk assessment problem has been addressed by a number of foreign (Eilifsen et al, 2001;Curtis and Turley, 2007;Robson et al, 2007;Waring and Morgan, 2007;Bourn, 2007;Knechel et al, 2007;Morgan, 2009) and Lithuanian authors. The value-at-risk methodology has been the subject matter of the research carried out by Kabašinskas andToliatienė (1994, 1997); Mackevičius (2001Mackevičius ( , 2005Puškorius (2004Puškorius ( , 2012Lakis (2007).…”