Audit Risk Assessment Model

The Development of Audit Detection Risk Assessment System: Using the Fuzzy Theory and Audit Risk Model

The result of audit designation is significantly influenced by the audit evidence collected when planning the audit and the degree of detection risk is further depends on the amount of audit evidence. Therefore, when the assessment factors of detection risk are more objective and correct, audit costs and the risk of audit failure can be reduced. Thus, the aim of this paper is to design an audit...

A Knowledge-Based Model of Audit Risk

The Audit Risk Model under the Risk of Fraud

In this article, we derive an audit risk formula for a simple situation. This formula closely resembles the SAS 47 model when we assume that no material misstatement due to fraud exists. A simple case illustrates how the risk of material misstatement due to management fraud impacts audit risk and how performing special audit procedures to detect such irregularities can decrease overall audit ri...

Risk Assessment For Spreadsheet Developments: Choosing Which Models to Audit

Errors in spreadsheet applications and models are alarmingly common (some authorities, with justification cite spreadsheets containing errors as the norm rather than the exception). Faced with this body of evidence, the auditor can be faced with a huge task the temptation may be to launch code inspections for every spreadsheet in an organisation. This can be very expensive and time-consuming. T...

Quality audit and the assessment of waterborne risk

In order to avoid the ‘garbage in, gospel out’ scenario described by Burmaster and Anderson (1994) it is becoming increasingly clear that there is a need for some sort of standardised quality assessment to examine the strength of the inputs to the assessment of risk area. This chapter proposes one possible approach and notes the need for further development in this area. While the examples draw...