Influences of Internal Control Risk in the Planning of an Audit: An Empirical Study of Coso Report Framework
Influencia de los Riesgos de Control Interno en la Planificación de una Auditoría: Un Estudio Empírico del Marco Conceptual del Informe Coso
Abstract
This paper studies whether the audit profession understands and follows the internal control framework developed in the COSO Report about the assessment of control risks. That is to say, the extent to which auditors assess control risks and transmit such assessments on substantive testing work when planning an audit, and take into account the assumptions of COSO which affect the identification of risks, in line with the new audit approach based on business risks. The results of the statistical tests show that, in general, the participants evaluated control risks and adjusted the quantity and extent of substantive procedures in accordance with the threats of internal control when they were presented by following the conceptual framework of the COSO Report.
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