A risk model to opine on internal control

Accounting Horizons

Volumn 24, Issue 1, 2010, Pages 65-78

  Akresh, Abraham D ^a  

^a US Government Accountability Office   (United States)

Author keywords

Audit risk model; Inherent risk; Integrated audit; Internal control; Opinion; Risk of material misstatement; Risk of material weakness

Indexed keywords

EID: 77950387231     PISSN: 08887993     EISSN: 15587975     Source Type: Journal    
DOI: 10.2308/acch.2010.24.1.65     Document Type: Note

References (35)

1. Allen, R. D., D. R. Hermanson, T. M. Kozloski, and R. J. Ramsay. 2006. Audit risk assessment: Insights from the academic literature. Accounting Horizons 20 2:157-177.
2. American Institute of Certified Public Accountants AICPA. 2006. Assessing and Responding to Audit Risk in a Financial Statement Audit audit guide. New York, NY: AICPA.
3. American Institute of Certified Public Accountants AICPA. 2008. Audit Sampling audit guide. New York, NY: AICPA.
4. American Institute of Certified Public Accountants AICPA. 2009a. Codification of Statements on Auditing Standards (Including Statements on Standards for Attestation Engagements) Numbers 1 to 116. New York, NY: AICPA.
5. American Institute of Certified Public Accountants AICPA. 2009b. Proposed Statements on Auditing Standards, Risk Assessment. New York, NY: AICPA.
6. Bedard, J. C., and L. Graham. 2009. Factors affecting the severity of Sarbanes-Oxley Section 404 internal control deficiencies: Archival evidence. Working paper, Bentley University.
7. Bierstaker, J. L., J. E. Hunton, and J. C. Thibodeau. 2009. Do client-prepared internal control documentation and business process flowcharts help or hinder an auditor's ability to identify missing controls? Auditing: A Journal of Practice & Theory 28: 79-94.
8. Boritz, J. E., and P. Zhang. 1999. The auditor's objectivity under negligence liability system. Auditing: A Journal of Practice & Theory 18 (Supplement): 147-165.
9. Coates, J. C., IV. 2007. The goals and promise of the Sarbanes-Oxley Act. The Journal of Economic Perspectives 21 1:91-116.
10. Cushing, B., and J. K. Loebbecke. 1983. Analytical approaches to audit risk: A survey and analysis. Auditing: A Journal of Practice & Theory 3: 23-48.
11. Daniel, S. 1988. Some empirical evidence about the assessment of audit risk in practice. Auditing: A Journal of Practice & Theory 7 2:174-181.
12. Dusenbury, R. B., and J. L. Reimers. 1996. An empirical study of belief-based and probability-based specifications of audit risk. Auditing: A Journal of Practice & Theory 15 2:12-28.
13. Ettredge, M., C. Li, and L. Sun. 2006. The impact of internal control quality on audit delay in the SOX era. Auditing: A Journal of Practice & Theory 25: 1-24.
14. Government Accountability Office/President's Council for Integrity and Efficiency GAO/PCIE. 2008. Financial Audit Manual. Available at: http://www.gao.gov/special.pubs/gaopcie/.
15. Haskins, M. E., and M. W. Dirsmith. 1995. Control and inherent risk assessments in client engagements: An examination of their interdependencies. Journal of Accounting and Public Policy 14 1:63-83.
16. Hoitash, R., U. Hotash, and J. C. Bédard. 2009. Internal controls quality and audit pricing under the Sarbanes-Oxley Act. Auditing: A Journal of Practice & Theory forthcoming.
17. Huang, H.-W., K. Raghunandan, and D. Rama. 2009. Audit fees for initial audit engagements before and after SOX. Auditing: A Journal of Practice & Theory 28: 171-190.
18. Jiambalvo, J., and W. S. Waller. 1984. Decomposition and assessments of audit risk. Auditing: A Journal of Practice & Theory 4: 80-88.
19. Kinney, W. R., Jr. 1983. A note on compounding probabilities in auditing. Auditing: A Journal of Practice & Theory 2: 13-22.
20. Kinney, W. R., Jr. 1989. Achieved audit risk and the audit outcome space. Auditing: A Journal of Practice & Theory 8(Supplement): 67-84.
21. Messier, W. F., Jr. and L. A. Austen. 2000. Inherent risk and control risk assessments: Evidence on the effect of pervasive and specific risk factors. Auditing: A Journal of Practice & Theory 19 2:119-131.
22. Public Company Accounting Oversight Board PCAOB. 2004. An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. Auditing Standard No. 2. Available at: http://www.pcaobus.org/Standards/Standards_and_Related_Rules/Auditing_Standard_No.2.aspx.
23. Public Company Accounting Oversight Board PCAOB. 2005a. An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. Report on the initial implementation of Auditing Standard No. 2. November 30. Available at: http://www.pcaobus.org/Inspections/Other/2005/11-30_Release_2005-023.pdf.
24. Public Company Accounting Oversight Board PCAOB. 2005b. An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. Policy statement regarding implementation of Auditing Standard No. 2. May 16. Available at: http://www.pcaobus.org/Rules/Docket_008/2005-05-16_Release_2005-009.pdf.
25. Public Company Accounting Oversight Board PCAOB. 2005c. Staff Questions and Answers: Auditing Internal Control over Financial Reporting. May 16. Available at: http://www.pcaobus.org/Standards/Staff_Questions_and_Answers/2005/05-16.pdf.
26. Public Company Accounting Oversight Board PCAOB. 2005d. Staff Questions and Answers: Auditing Internal Control over Financial Reporting. January 21. Available at: https://corporatecompliance.org/Content/NavigationMenu/Resources/IssuesAnswers/AuditingControlReporting05-01-21.pdf.
27. Public Company Accounting Oversight Board PCAOB. 2007. An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements. Auditing Standard No. 5. Available at: http://www.pcaobus.org/Rules/Rules_of_the_Board/Auditing_Standard_5.pdf.
28. Public Company Accounting Oversight Board PCAOB. 2008. Proposed Auditing Standards Related to the Auditor's Assessment of and Response to Risk. Available at: http://www.pcaobus.org/Rules/Docket_026/2008-10-21_Release_No_2008-006.pdf.
29. Public Company Accounting Oversight Board PCAOB. 2009a. An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements: Guidance for Auditors of Smaller Public Companies. Available at: http://www.pcaobus.org/Standards/Standards-and-Related-Rules/AS5/Guidance.pdf/
30. Public Company Accounting Oversight Board PCAOB. 2009b. An Audit of Internal Control that is Integrated with an Audit of Financial Statements. Report on the first-year implementation of Auditing Standard No. 5. September 24. Available at: http://www.pcaobus.org/Inspections/Other/2009/09-24_AS5_4010_Report.pdf.
31. Public Company Accounting Oversight Board PCAOB. 2009c. Proposed Auditing Standards Related to an Auditor's Assessment of and Response to Risk and Related Amendments to PCAOB Standards. December 17. Available at http://www.pcaobus.org/Standards/Standards_and_Related_Rules.aspx
32. Raghunandan, K., and D. Rama. 2006. SOX Section 404 material weakness disclosures and audit fees. Auditing: A Journal of Practice & Theory 25: 99-114.
33. Sennetti, J. 1990. Toward a more consistent model for audit risk. Auditing: A Journal of Practice & Theory 9 2:103-112.
34. Smieliauskas, W. 2007. What's wrong with the current audit risk model? Accounting Perspectives 6 4: 343-368.
35. Strawser, J. R. 1990. Human information processing and the consistency of the audit risk model. Accounting and Business Research 21(Winter): 67-75.