Uk Auditors' Perceptions of Inherent Risk

Helliar, Christine; Lyon, Bob; Monroe, Gary S.; Ng, Juliana; Woodliff, David

doi:10.1006/bare.1996.0003

Cited by 21 publications

(18 citation statements)

References 10 publications

(33 reference statements)

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“…In addition, ISA 200 notes: "The auditor considers the risk of material misstatement at the overall financial statement level, which refers to risks of material misstatement that relate pervasively to the financial statements as a whole and potentially affect many assertions". Account remaining sum level can be explained as risk factors in which certain account of enterprises may have a major misstatement (Helliar et al, 1996). In addition, professional standards refer to this level: "the auditor also considers the risk of material misstatement at the class of transactions, account balance, and disclosure level because such consideration directly assists in determining the nature, timing, and extent of further audit procedures at the assertion level" (IAS 200/28; ISA 315/100).…”

Section: Modeling Algorithm For Proposed Modelmentioning

confidence: 99%

“…There are different disadvantages on traditional auditing systems such as inefficient allocation resources for auditing program (Law, 2008;Helliar et al, 1996, Khorana & Raman, 2004Krishnan & Krishnan, 1997;Bedard & Graham, 2002;Mock et al, 1998). Auditing standards also require assessing audit risk in each independent audit engagement based on ARM (SAS.47;ISA.…”

Section: Introductionmentioning

confidence: 99%

“…Theoreticians of decision making have indicated that even experts have problem in assessing risks (Austen et al, 2000). In addition, many studies stated that the auditors' professional judgmental capability is limited, and they indicated that the auditors' professional judgment was affected by training, experience, and the capabilities dealing with time and complicated issues (Bedard & Graham, 2002;Helliar et al 1996;Khurana & Raman, 2004;Krishnan & Krishnan, 1997;Low, 2004;Turner et al 2002;Wustemann, 2004). These studies highlight the fuzzy nature of auditee risk assessment and qualitative and ambiguous attributes linked to risk assessment through traditional ARM.…”

Section: Introductionmentioning

confidence: 99%

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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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Section: Modeling Algorithm For Proposed Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Fuzzy audit risk modeling algorithm

Hajihaa¹

2011

msl

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“…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%

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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“…Therefore, the final determination of the audit result was according to the ultimate judgment of the auditors (Mock et al 1998). However, many studies have been suspicious of the auditors' professional judgmental capability to distinguish audit evidence and proper responses and they indicated that the audit staff's professional judgment was profoundly affected by training, experience, and the capabilities dealing with time and complicated issues (Bedard and Graham 2002;Helliar et al 1996;Khurana and Raman 2004;Krishnan and Krishnan 1997;Low 2004;Turner et al 2002;Wustemann 2004). …”

Section: Introductionmentioning

confidence: 99%