I am doing research, and one of my research variables is audit risk assessment. I want to do applied studies instead of questionnaires.
Here are some steps you can follow:
1- determine inherent risk: identify and evaluate thé inherent risk associated with thé entity's transactions, account balances, and disclosures.
2- assess control risk: assess the risk that the entity's internal controls would not prevent or detect a material misstatment.
3- estimate detection risk: detection risk is the risk that the audit procedures would fail to detect a material misstatment.
1- combine the assessed risk: consider the assessment made for inherent risk, control risk, and detection risk to determine the overall audit risk.
To measure audit risk assessment, auditors typically use a formula that combines inherent risk, control risk, and detection risk. The formula is as follows: Audit Risk AR =Inherent Risk IR ×Control Risk CR ×Detection Risk DR Audit Risk (AR) =Inherent Risk (IR) ×Control Risk (CR) ×Detection Risk (DR).
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