Design and Application Research of Audit Risk Control Program

2013 ◽  
Vol 310 ◽  
pp. 718-721
Author(s):  
Li Ya Ma ◽  
Shu Feng Wang
Keyword(s):  
Risk Model ◽  
Risk Control ◽  
Control Program ◽  
Audit Report ◽  
Audit Risk ◽  
Specific Content ◽  
Auditing Standards ◽  
Audit Reports ◽  
Independent Auditing ◽  
And Control

Strict procedures for prevention and control of audit risk is one of the most effective measures, so the research on design of audit risk control standardization program has very great practical application value. Combined with the research needs, the CPA practices respectively utilize means of summarizing method, for example, analysis method and enumeration method. The CPA practice also revealing the audit risk and audit report risk associated with different basis, combining with the traditional audit risk model. The specific content concludes the report of audit risk and then designs including audit reports preparation, audit draft, final review report to track a feedback of visit to the control standard operating requirements, and then puts forward the independent auditing standards. The auditing standards should be added to the proposal of audit report program.

A Risk Model to Opine on Internal Control

2010 ◽  
Vol 24 (1) ◽  
pp. 65-78 ◽  
Author(s):  
Abraham D. Akresh
Keyword(s):  
Conceptual Framework ◽  
Internal Control ◽  
Risk Model ◽  
Financial Statements ◽  
Financial Statement ◽  
Material Weakness ◽  
Audit Risk ◽  
Audit Risk Model ◽  
Auditing Standards

SYNOPSIS: In recent years, auditors have reported on the effectiveness of internal control, usually as part of integrated audits. The audit risk model currently in auditing standards was designed for financial statement audits, not internal control audits—a key part of integrated audits. Because the audit of processes (internal control) is conceptually different from the audit of outputs (financial statements), the auditor needs a different risk model to provide a conceptual framework for internal control audits. The model I propose1 provides the auditor a method to determine the appropriate nature, timing, and extent of testing in an integrated audit. My model is focused on the risk of material weakness, rather than the risk of material misstatement. I also show how the auditor would use two different models in an integrated audit.

Misstatements in Financial Statements: The Relationship between Inherent and Control Risk Factors and Audit Adjustments

2014 ◽  
Vol 33 (4) ◽  
pp. 247-269 ◽  
Author(s):  
Klaus Ruhnke ◽  
Martin Schmidt
Keyword(s):  
Risk Factors ◽  
Internal Control ◽  
Risk Model ◽  
Relative Magnitude ◽  
Level Control ◽  
Audit Risk ◽  
Big 4 ◽  
Audit Risk Model ◽  
And Control ◽  
Control Risk

SUMMARY: This paper analyzes whether audit adjustments vary systematically with inherent and control risk factors. The analysis is based on proprietary data from a large recent sample of audit adjustments detected in the financial statement audits conducted by a Big 4 audit firm in Germany. We extend the scope of prior studies by incorporating client-specific planning materiality in our design, enabling us to analyze the relative magnitude of adjustments. Our findings show that audit adjustments vary systematically, as proposed by the audit risk model. Specifically, the integrity and competence of the client's management, economic position, entity-level control strength, and internal control system are associated with the number and relative magnitude of audit adjustments. The results also suggest that inherent and control risk factors are particularly strongly associated with income-affecting adjustments. JEL Classifications: M40, M41, M42.

Inherent Risk and Control Risk Assessments: Evidence on the Effect of Pervasive and Specific Risk Factors

2000 ◽  
Vol 19 (2) ◽  
pp. 119-131 ◽  
Author(s):  
William F. Messier ◽  
Lizabeth A. Austen
Keyword(s):  
Risk Factors ◽  
Risk Model ◽  
Positive Association ◽  
Risk Assessments ◽  
Significant Positive Association ◽  
Audit Risk ◽  
Inherent Risk ◽  
Specific Risk ◽  
And Control ◽  
Control Risk

This paper reports on a study that examines the effect of pervasive and specific risk factors on auditors' inherent risk and control risk assessments in an experimental setting. Two hypotheses concerning the significance of inherent and control risk factors on auditors' inherent risk (IR) and control risk (CR) assessments were tested by having 124 senior auditors and managers provide risk assessments on eight cases. The results show that the pervasive and specific risk factors included in the experiment were significant to both the auditors' IR and CR assessments. For the case used in this study, there was a significant positive association between auditors' IR and CR assessments. Taken together, these findings are consistent with Waller's (1993) notion of a knowledge-based dependency between IR and CR assessments. The findings are not consistent with Kinney's (1989) reformulation of the (IR×CR) component of the audit risk model.

Twenty-Five Years of Audit Deregulation and Re-Regulation: What Does it Mean for 2005 and Beyond?

2005 ◽  
Vol 24 (s-1) ◽  
pp. 89-109 ◽  
Author(s):  
William R. Kinney
Keyword(s):  
Corporate Governance ◽  
Risk Model ◽  
Initial Conditions ◽  
Regulatory Environment ◽  
Audit Risk ◽  
Accounting Firms ◽  
Audit Risk Model ◽  
Assurance Services ◽  
Auditing Standards ◽  
Audit Regulation

This paper explores broad trends in regulation of the auditing profession from 1981–2005, the first 25 years of Auditing: A Journal of Practice & Theory. It begins with a sketch of the 1980 regulatory environment, three constants over the next 25 years, and three external developments or “shocks” that dramatically affected audit regulation activity. The initial conditions, constants, and shocks are then related to audit regulation beginning with the audit risk model in the 1980s as the basis for selfregulated auditing standards, continuing with a vision of unregulated, non-mandated value-adding assurance services in the 1990s, and finally, the 2002 statutory adoption of independent regulation of registered accounting firms and a government-sanctioned corporate governance role for auditors. I close with some implications of the 2005 audit regulation environment for future auditing scholars and practitioners.

scholarly journals Analysis of the relationship between company characteristics and key audit matters disclosed

2020 ◽  
Vol 31 (83) ◽  
pp. 262-274
Author(s):  
Catarina Ferreira ◽  
Ana Isabel Morais
Keyword(s):  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Financial Information ◽  
Audit Report ◽  
Consolidated Financial Statements ◽  
Factors Affecting ◽  
Factors Associated ◽  
Big 4 ◽  
Auditing Standards ◽  
Audit Reports

ABSTRACT The general objective of this study is to analyze whether the particularities of audited companies influence the volume of key audit matters (KAMs). Its specific objectives are to identify the number of KAMs disclosed by Brazilian companies and analyze the main factors associated with their disclosure. The paper aims to contribute to an area of investigation still lacking in studies that analyze the factors affecting KAM disclosure, which makes audit reports more individualized. The study contributes to understanding the main auditing issues in Brazilian companies that auditors consider relevant, by providing evidence on factors associated with their disclosure. This research is relevant for agencies that issue auditing standards and for financial information users. For issuers of auditing standards, the study is relevant because it identifies the factors associated with KAM disclosure, enabling it to be confirmed that the new audit report model has contributed to its destandardization. For financial information users, the study demonstrates that KAM disclosure varies from company to company, thus contributing to greater transparency of the audit report. Data were collected from the Audit Reports and Consolidated Financial Statements of the 447 Brazilian companies listed on the São Paulo Securities, Commodities, and Futures Exchange (BM&FBovespa), on December 31st of 2016, and an ordinary least squares (OLS) regression was applied to the defined model. The results show a positive relationship between the number of KAMs disclosed and both the auditor being a Big 4 and the complexity of the audited company. The auditor’s fees and auditor’s opinion being modified show a negative relationship with the number of KAMs. The article is relevant for companies, auditors, and regulatory and supervisory bodies as it identifies company characteristics that influence KAM disclosure and are determinants for the non-standardization of the auditor’s report.

scholarly journals The Effect of Corporate Social Performance on Audit Hours: Moderating Role of the Emphasis of Matter Paragraphs in Audit Report

2020 ◽  
Vol 12 (3) ◽  
pp. 931
Author(s):  
Hyun Ah Kim ◽  
Nam Chul Jung
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Audit Report ◽  
Related Factors ◽  
Audit Risk ◽  
Potential Risks ◽  
Audit Reports ◽  
Corporate Social ◽  
Moderating Role

This study investigated the effect of corporate social performance (CSP) on audit hours and whether the emphasis of matter (EOM) paragraphs in audit report moderates the association between CSP and audit hours. Auditors input audit hours based on the judgement of audit risk related to firm and managerial characteristics. They increase audit hours when they perceive that client companies are riskier; thus, audit hours reflect auditors’ perceptions of the firm. Prior studies have shown that high CSP is associated with ethical managers, leading to fewer audit hours. However, auditors’ perceptions of CSP can be different depending on their knowledge about firms’ potential risks. EOM paragraphs consists of risk-related factors, such as going-concern opinions or litigation and they should be considered when auditors determine that users need to check this information acquired in the auditing process. Therefore, EOM is likely to affect auditors’ perceptions of CSP. This study investigates this possibility by examining whether the associations between CSP and audit hours are different in firms with and without EOM paragraphs in audit reports. Using Korean listed companies from 2011 to 2016, we found that CSP has a negative association with audit hours, suggesting that better CSP is related to ethical corporate social responsibility (CSR) in Korea, consistently with the literature. However, CSP is not related to audit hours for firms with EOM paragraphs, possibly indicating that auditors differently interpret CSP based on their knowledge gained in the auditing process. Our findings contribute to the literature by suggesting that EOM paragraphs can be used in distinguishing firms’ CSR motivations and that information users should be careful in interpreting CSP.

A computer-control program for TEM in situ fatigue experiments

1989 ◽  
Vol 47 ◽  
pp. 620-621
Author(s):  
Kenneth S. Vecchio ◽  
John A. Hunt
Keyword(s):  
Slow Crack Growth ◽  
Computer Control ◽  
Control Program ◽  
Video Tape ◽  
Computer Control System ◽  
Transmission Electron ◽  
In Situ Experiments ◽  
Tremendous Amount ◽  
And Control

In-situ experiments conducted within a transmission electron microscope provide the operator a unique opportunity to directly observe microstructural phenomena, such as phase transformations and dislocation-precipitate interactions, “as they happen”. However, in-situ experiments usually require a tremendous amount of experimental preparation beforehand, as well as, during the actual experiment. In most cases the researcher must operate and control several pieces of equipment simultaneously. For example, in in-situ deformation experiments, the researcher may have to not only operate the TEM, but also control the straining holder and possibly some recording system such as a video tape machine. When it comes to in-situ fatigue deformation, the experiments became even more complicated with having to control numerous loading cycles while following the slow crack growth. In this paper we will describe a new method for conducting in-situ fatigue experiments using a camputer-controlled tensile straining holder.The tensile straining holder used with computer-control system was manufactured by Philips for the Philips 300 series microscopes. It was necessary to modify the specimen stage area of this holder to work in the Philips 400 series microscopes because the distance between the optic axis and holder airlock is different than in the Philips 300 series microscopes. However, the program and interfacing can easily be modified to work with any goniometer type straining holder which uses a penrmanent magnet motor.

scholarly journals Exploring the mechanisms of collaboration between the Tuberculosis and Diabetes Programs for the control of TB-DM Comorbidity in Ghana

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Rita Suhuyini Salifu ◽  
Khumbulani W. Hlongwana
Keyword(s):  
Communicable Disease ◽  
Control Program ◽  
Communicable Diseases ◽  
Local Health ◽  
National Tuberculosis Control Program ◽  
National Tuberculosis ◽  
Local Health Facility ◽  
Control And Prevention ◽  
And Control ◽  
Non Communicable Disease

Abstract Objectives To explore the mechanisms of collaboration between the stakeholders, including National Tuberculosis Control Program (NTP) and the Non-Communicable Disease Control and Prevention Program (NCDCP) at the national, regional, and local (health facility) levels of the health care system in Ghana. This is one of the objectives in a study on the “Barriers and Facilitators to the Implementation of the Collaborative Framework for the Care and Control of Tuberculosis and Diabetes in Ghana” Results The data analysis revealed 4 key themes. These were (1) Increased support for communicable diseases (CDs) compared to stagnant support for non-communicable diseases (NCDs), (2) Donor support, (3) Poor collaboration between NTP and NCDCP, and (4) Low Tuberculosis-Diabetes Mellitus (TB-DM) case detection.

Study on Novel Automatic Steel Bundling Machine Pneumatic Control System

2012 ◽  
Vol 490-495 ◽  
pp. 594-597
Author(s):  
Cheng Qun Li ◽  
Liang Gao
Keyword(s):  
Control System ◽  
Control Program ◽  
Control Flow ◽  
Pneumatic Control ◽  
The Core ◽  
New Type ◽  
Action Process ◽  
And Control

This paper introduces a new type of automatic steel bundling machine for bundling process, which includes a pneumatic action process, mainly do some researches on the pneumatic control system. The system chooses PLC as the core control component, puts forward the hardware of control system and control flow. Eventually we have been designed the control program.

Sign in / Sign up

Export Citation Format

Share Document