Auditor Business Process Analysis and Linkages among Auditor Risk Judgments

Thomas M. Kozloski, Natalia Kochetova-Kozloski, William F. Messier

Research output: Contribution to journalArticlepeer-review

Abstract

This research note examines whether auditors “link” their entity-level risk assessments to their core business process risk assessments. For auditors who performed a business process analysis of the core business process, there is a positive association between the identification of significant process-level business risks and the identification of significant business risks at the entity level. We also find that performing a business process analysis leads to higher assessments of the risk of material misstatement at the process level. With respect to the linkages between risk-related judgments, we find that auditors link their assessments of misstatement risk at the process level to similar assessments at the entity level, while taking into account significant process-level risks.
Original languageAmerican English
JournalAuditing: A Journal of Practice and Theory
Volume32
DOIs
StatePublished - 2011

Disciplines

  • Accounting

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