search query: @indexterm AUDITING / total: 1120
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| Author: | Schultz, J.J. Jr. Bierstaker, J.L. O'Donnell, E. |
| Title: | Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic-systems-audit approach |
| Journal: | Accounting, Organizations and Society
2010 : FEB, VOL. 35:2, p. 238-251 |
| Index terms: | accounting auditing standards auditors risk analysis |
| Freeterms: | misstatements |
| Language: | eng |
| Abstract: | Auditing standards direct auditors to consider business risk and other risk factors. Generally, large audit firms use either a strategic-systems approach (SSA) or a transaction-focused approach (TFA) to evaluate misstatement risk. Using data from a laboratory experiment, this study aims to examine whether 1. being trained to use either SSA or TFA and 2. analyzing information organized in an SSA or TFA format influence the extent to which auditors integrate knowledge of business risk into their judgment about the likelihood of financial misstatement. Only auditors trained to use SSA who analyzed information provided in an SSA format effectively integrated business risk assessments with their assessment of the risk of material misstatement. |
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