The impact of audit risk on quality
Knapp defines the quality of audit services through the audit risk concept as follows: "Quality of audit services means the auditor's risk of discovery that leads to risk of audit and the auditors will disclose material misstatement of the financial statements."
In the opinion of the author, if the auditor planned the review process on the basis of the study of the factors affecting the risk and identified the risk areas and taken into account in the conduct of each audit procedure and then use the procedure commensurate with the nature of the element or the objective of the audit or the specific task and the level of danger exposed, The audit opinion is supported in the financial statements and leads to the efficiency and effectiveness of the audit process and the risk and risk exposure is minimized and acceptable, and such review will increase the professional competence of the auditor and lead to increased quality The audit process itself, by improving the auditor's opinion in the audited financial statements, on which many entities rely as input to their decision forms, meets the needs of the users of the financial statements in the expectation that the audited financial statements will be free of material errors and irregularities, This could lead to a reduction in the forecast gap.
"The quality of the audit service should not be observable either when contracting or performing, but the evaluation of high quality audit services is often driven by a threat of prosecution," said one researcher. "When the auditor surrenders to management pressure, he can overlook (material) errors in the accounts, so users of these accounts can sue the auditor, and competition in the audit market has led to Increase the pressure on the time balance in the review, which often leads to shortening the audit programs and delete a lot of procedures and therefore each of these positions will lead to a reduction in the quality of the audit and thus the high level of risk. One of the studies has shown that recent developments in the audit environment have led to the need to improve the quality of professional services, and the approaches to improve the quality of professional services is the evaluation and risk of audit. Most audit procedures aim to assist the auditor in compiling evidence and evidence that contributes to determining the final risk for review.
Based on the above, the author believes that the development of audit environment has contributed to the emergence of many audit risk factors. In the field of e-commerce, the risk factors inherent in the nature of the financial statements have increased, and the risk factors of control have expanded, affecting the profession in general and the auditors in particular As for the profession, the successive versions of the audit criteria are evidence of the significant impact of the associated risk factors. As for the auditor, the extent of the risks that he faces in the midst of this change has affected his view of the client. By performing the audit function, the auditor seeks to add value to the client. The audit also begins with the evaluation of internal control systems through documentation, risk assessment, The end of audit work has also been affected, and the impact of audit risk factors does not go so far, but extends beyond that, as confirmed by the successive professional editions since 1990 to date (Audit Risk Alerts).
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