Accounting undergraduate Honors theses: Does industry level information affect auditors ’ assessment of client level risk

The purpose of this study is to investigate whether auditors respond to industry-level information in their assessment of client-level risk and how this response affects audit outcomes.1 Auditing standards require auditors to consider risks of material misstatement from a variety of sources, including conditions in the company’s industry, when assessing risk (PCAOB AS 2110).