THE RISK ASSESSMENT PRACTICES OF AUDIT FIRMS

ABSTRACT. Abdullatif and Al-Khadash hold that the international audit firms generally apply a set of international quality control criteria to be applied in every individual country in which they operate. Mariani et al. write that firms with the largest absolute value of total accruals will show higher discretionary accruals. Blay et al. address the question of whether the aggregation of inherent and control risks into one measure (misstatement risk) impedes auditor decision-making. Bedard et al. use auditors’ evaluations of their clients’ systems risk factors as a source of data on the difficulties frequently seen in company systems. (pp. 138–143)

JEL: G32, M41, M42