1. Using the Audit Risk Model in an ERP Environment: Evidence From Canada and China.
- Author
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Messabia, Nabil, Elbekkali, Abdelhaq, Blanchette, Michel, and Xiaoling Xing
- Subjects
AUDIT risk ,AUDITING standards ,ENTERPRISE resource planning ,FINANCIAL statements ,RISK assessment - Abstract
This paper examines the practical use of The Audit Risk Model (ARM) in Enterprise Resources Planning (ERP) settings. International Auditing Standards (IAS) suggest that auditors of financial statements rely on the ARM to plan audit engagements. Sixty practicing auditors (30 from Canada and 30 from China) performed risk assessments on Audit Risk (AR), Inherent Risk (IR) and Control Risk (CR) in light of identical case materials. Our findings suggest that there is no significant difference between Canadian and Chinese auditors when interpreting similar data to establish their risk assessments. Nevertheless, the information regarding ERP caused the biggest discrepancy both between and within the two groups. [ABSTRACT FROM AUTHOR]
- Published
- 2020
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