EXPLAINING THE AUDIT RISK AND ITS COMPONENTS: A COMPARATIVE CASE-STUDY BASED ON AUDIT REPORTS

Alina Voiculescu and Sorina Simona Bumbescu
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Alina Voiculescu: ”1ST OF DECEMBER 1918” UNIVERSITY, ALBA IULIA, ROMANIA
Sorina Simona Bumbescu: ”1ST OF DECEMBER 1918” UNIVERSITY, ALBA IULIA, ROMANIA

Annals - Economy Series, 2014, vol. 4, 138-148

Abstract: The players activating in the post-recession business environment have to and begin to be more and more prudent and attentive to any sign of human errors, uncertainty, lack of objectivity, attempt of fraud which may occur when financial statements are prepared, in their own case or in the case of their trade clients/suppliers, debtors, business partners, in general. Auditors thus became the mediators between the producers and the users of accountant information, using their high theoretical training, authority, competence and independence as pledge for the fairness of the financial statements and for the compliance with the Law. But even their reports are subject to uncertainty, therefore the author considered useful to approach in the current paper the issue of risk in financial audit, by use of a study-case of several audit reports, in order to explain and exemplify it and to highlight the difference between its components’ evaluation.

Keywords: audit risk; inherent risk; control risk; un-detection risk; internal control investments; financial suport of environmental protection policy (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2014:v:4:p:138-148

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