Measuring Audit Risk in External Consulting Services as a Quality Factor
Journal Title: Revista CEA - Year 2024, Vol 10, Issue 22
Abstract
Purpose: To propose a methodological strategy to identify audit risk and possible control actions that should be implemented by external consulting firms based on a narrative review of scientific articles and the corresponding auditing standards. Design/Methodology: In this study, a narrative literature review was conducted to investigate not only the corresponding International Standards on Auditing (ISA) but also scientific articles in the Dimensions and ScienceDirect databases that have addressed the topics of interest here: audit risk measurement and quality of financial information derived from consulting processes. The results of this review are consolidated in risk assessment matrices and cause-and-effect tree diagrams. Findings: Tools that have been developed to control and measure audit risk can be used by external consulting firms by means of a matrix of critical control points associated with that risk and unfavorable actions, as well as actions that favor the quality of financial information. They can employ a practical approach to auditing and a risk assessment matrix for the audit process. Conclusions: Financial information is the most important tool for strategic organizational management; therefore, audit processes should guarantee its quality. Audit risk has been consolidated as the quality indicator of the audit process itself and, consequently, of the audited financial information. Originality: This article proposes tools to measure audit risk based on a theoretical approach to management, namely, risk theory. Auditors can use these practical tools to manage and assess audit risk.
Authors and Affiliations
Juliana Carolina Farfán Rodríguez, Daniela Irene Valencia Ríos
Keywords
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