Open AccessApplication of visualization methods of audit risk assessment in developing an audit strategy
Author(s) -
Olga Shvyreva,
A.V. Petukh,
Mikhail V. Petukh
Publication year - 2021
Publication title -
revista ecorfan
Language(s) - English
Resource type - Journals
ISSN - 2007-3682
DOI - 10.35429/ejm.2022.28.13.1.10
Subject(s) - audit , audit risk , materiality (auditing) , internal audit , risk analysis (engineering) , audit plan , accounting , business , visualization , computer science , process management , joint audit , data mining , philosophy , aesthetics
ObjectivesThis study aims to formalize developing a risk-based audit strategy and planning effective and rational audit procedures that reduce the risks of material misstatements and formalize these in a sufficiently detailed and understandable form to ensure the audit engagement high quality. The applicability of different materiality levels to parameterize the significance of risks of material misstatement is substantiated. A scenario mechanism for sufficient auditor actions in response to specific characteristics of the risk factor based on the risk heat map was developed.MethodologyThe new method of the risk complex visualization – spectrum analysis of the assessed risk factors of material misstatement to develop an audit strategy was proposed.ContributionThe usefulness of the study results is to develop and test on a specific example of the audit engagement the risk-oriented approach that allows the most rational use of the audit organization resources. The methodology is also applicable for managing the risks of material misstatement in the internal audit.