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Inherent Risk and Indicative Factors: Senior Auditorsí Perceptions


Shailer, G and Willett, RJ and Wade, M and Yap, K, Inherent Risk and Indicative Factors: Senior Auditors' Perceptions, Managerial Auditing Journal, 13, (8-9) pp. 455-464. ISSN 0268-6902 (1998) [Refereed Article]

DOI: doi:10.1108/02686909810370551


This paper examines the perceptions of senior auditors in large firms in Sydney, Kuala Lumpur and Auckland concerning the nature and assessment of the inherent risk in risk based auditing. The geographic dispersion of participants from internationally linked firms does not appear to result in any cultural and geographic effects. Assessment of inherent risk appears predominantly qualitative and is not necessarily linked to the comprehensive aggregation of risks typically presented in audit risk models. There is some blurring of control risk factors with inherent risk and one‐third of participants assess inherent and control risk jointly. Risk factors appear to be grouped in importance in a manner that suggests different attitudes to management, system‐oriented, environmental and oversight risks. The identification of four possible factors (internal risk, external risk, system risk and oversight threats) may provide a basis for further investigation of how auditors assess inherent risk. There is an apparent division between "internally" and "externally" sourced risk.

Item Details

Item Type:Refereed Article
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, auditing and accountability
Research Field:Auditing and accountability
Objective Division:Culture and Society
Objective Group:Religion
Objective Field:Religion and society
UTAS Author:Willett, RJ (Professor Roger Willett)
ID Code:100535
Year Published:1998
Deposited By:TSBE
Deposited On:2015-05-19
Last Modified:2015-05-19

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