Audit risk detection

The purpose of this study is to investigate the auditor's views on the allegations of failure of audit judgment when the client receives a reasonable opinion without exception but later it is proven that the client is cheating financial statements. This research also aims to explore supply chain managements that have the potential to influence the determination of the auditor's risk of material misstatement in the auditor's legal obligations related to fraud detection.

8p longtimenosee06 27-03-2024 8 1   Download

The paper has used a combination of qualitative and quantitative research methods through a survey of 113 experienced auditors and SPSS software to conduct statistical description of fraud risk indicators (red flags) and effectively audit procedures to identify frauds related to inventory items in preparing financial statements of non-financial companies listed on the Vietnam’s stock market.

8p vihassoplattner 07-01-2022 15 1   Download

Basing on the research methods of several researchers with adjustments, we investigate the effectiveness of inventory auditing procedures in detecting frauds through surveying 97 auditors working in auditing firms in Vietnam. By applying descriptive statistics and t test methodology (SPSS 20.0 software), we assess and classify auditing procedures based on their effectiveness in detecting frauds.

14p huyetthienthan 23-11-2021 21 0   Download

This paper presents a method that automatically detects auditing risk using machine learning approaches. The criteria to assess auditing risks will serve as inputs in the machine learning algorithms, and the output will be the ranking of low, medium, high level of auditing risk.

9p vilarrypage 21-11-2021 10 1   Download

Audit firms that fail to detect fraud or material misstatements in the financial statements of their audit clients may suffer substantial monetary penalties and negative publicity in the event of audit failure. The present study investigates auditors’ perception regarding the use of non-financial data and information to verify the validity of financial data and information reported by an audit client during an audit engagement.

12p vimadrid2711 18-12-2019 18 0   Download

A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

179p tay_thi_le 19-02-2013 45 4   Download

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

101p tay_thi_le 19-02-2013 70 5   Download

Many of the early compliance models assumed that audits were expensive but that penalties could be imposed at low cost to the enforcing agency once an error had been detected. It is not surprising that those models typically showed that, subject to a fixed-budget constraint, the combination of high penalties and low audit rates was socially optimal (McCubbin, 2004). Those results are sensitive to several underlying assumptions. First, feelings about risk vary from one group to another; younger people, for example, could be less risk-averse than older people are.

37p quaivatxanh 01-12-2012 57 7   Download

To understand an entity’s internal control, the auditor will evaluate the design and implementation of a control. The auditor's primary consideration is whether, and how, a specific control prevents, or detects and corrects, material misstatements in classes of transactions, account balances or disclosures. The heaviest emphasis by auditors is on controls over classes of transactions rather than account balances or disclosures

60p nklong1234 24-03-2010 247 91   Download

While insider attacks may cause more damage (because the attacker knows the system assets and what to target), insiders are also usually addressed by traditional security and audit. An insider has a much greater chance of being caught, since you know where they live. So while damaging, insider attacks are infrequent (because of the high risks of detection and arrest or dismissal), by contrast, it is extremely difficult to track and prosecute attackers arriving over the Internet. And because of the perception of low risk, attacks are a daily or hourly occurrence....

28p huyhoang 08-08-2009 179 12   Download