Abstract
This paper examines the auditor’s choice of audit procedure in response to client’s business risk assessment. Business risk ultimately translates into the risk of financial statement error. Therefore, an approach which focuses on understanding a business, its environment, and business processes provides the best means by which an auditor will recognize risks leading to business failure. To test the hypothesis that auditors change audit procedures in response to business risk, researchers will provide each subject with a statement of risk and a statement of risk with an additional environmental issues that will enhance business risk. Respondents will be provided with the audit procedures for each risk. The results will indicate whether auditor’s assessment of relevant audit procedures is affected by business risk. This study will contribute to the literature by examining the effect of business risk in audit planning.
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© 2014 Springer Science+Business Media Singapore
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Tahir, W.M.M.W., Paino, H., Rashid, S.A. (2014). Client’s Business Risk Assessment and Auditor’s Test. In: Kasim, A., Wan Omar, W., Abdul Razak, N., Wahidah Musa, N., Ab. Halim, R., Mohamed, S. (eds) Proceedings of the International Conference on Science, Technology and Social Sciences (ICSTSS) 2012. Springer, Singapore. https://doi.org/10.1007/978-981-287-077-3_15
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DOI: https://doi.org/10.1007/978-981-287-077-3_15
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