Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements
Recently, due to the changing geopolitical situation, economic instability and vulnerability, practicing auditors are facing new challenges that affect the identification and assessment of risks of material misstatement of financial statements. The purpose of the research is to identify the main fa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2022-12-01
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| Series: | Buhalterinės Apskaitos Teorija ir Praktika |
| Subjects: | |
| Online Access: | https://www.zurnalai.vu.lt/BATP/article/view/30236 |
| _version_ | 1797978466665103360 |
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| author | Deimantė Žukauskaitė Dalia Daujotaitė |
| author_facet | Deimantė Žukauskaitė Dalia Daujotaitė |
| author_sort | Deimantė Žukauskaitė |
| collection | DOAJ |
| description |
Recently, due to the changing geopolitical situation, economic instability and vulnerability, practicing auditors are facing new challenges that affect the identification and assessment of risks of material misstatement of financial statements. The purpose of the research is to identify the main factors affecting the risk of material misstatement and specific risks (fraud, accounting estimates, and going concern) that auditors should consider when deciding on the level of the risk of material misstatement of financial statements. To achieve the goal, two tasks were set: to compile lists of factors affecting the risk of material misstatement and specific risks; conduct a questionnaire survey to confirm the compiled lists. The following research methods were used during the research: content analysis and systematization of scientific and normative literature, comparison, logical analysis, questionnaire survey and summarization. As a result of the research, lists of the main factors determining the risk of material misstatement and specific risks were compiled, the completeness of which was confirmed during a questionnaire survey of auditors and auditor assistants working in Lithuanian audit companies. The results of the research show the necessary need for a more thorough assessment of specific risks. Compiled lists of factors determining the risk of material misstatement and specific risks can be useful for auditors of audit companies to assess the risk of material misstatement of financial statements.
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| first_indexed | 2024-04-11T05:24:31Z |
| format | Article |
| id | doaj.art-04af69af1d5a41e99747229d1d6d214b |
| institution | Directory Open Access Journal |
| issn | 1822-8682 2538-8762 |
| language | English |
| last_indexed | 2024-04-11T05:24:31Z |
| publishDate | 2022-12-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Buhalterinės Apskaitos Teorija ir Praktika |
| spelling | doaj.art-04af69af1d5a41e99747229d1d6d214b2022-12-23T09:43:58ZengVilnius University PressBuhalterinės Apskaitos Teorija ir Praktika1822-86822538-87622022-12-012610.15388/batp.2022.46Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial StatementsDeimantė Žukauskaitė0Dalia Daujotaitė1Mykolas Romeris University, LithuaniaMykolas Romeris University, Lithuania Recently, due to the changing geopolitical situation, economic instability and vulnerability, practicing auditors are facing new challenges that affect the identification and assessment of risks of material misstatement of financial statements. The purpose of the research is to identify the main factors affecting the risk of material misstatement and specific risks (fraud, accounting estimates, and going concern) that auditors should consider when deciding on the level of the risk of material misstatement of financial statements. To achieve the goal, two tasks were set: to compile lists of factors affecting the risk of material misstatement and specific risks; conduct a questionnaire survey to confirm the compiled lists. The following research methods were used during the research: content analysis and systematization of scientific and normative literature, comparison, logical analysis, questionnaire survey and summarization. As a result of the research, lists of the main factors determining the risk of material misstatement and specific risks were compiled, the completeness of which was confirmed during a questionnaire survey of auditors and auditor assistants working in Lithuanian audit companies. The results of the research show the necessary need for a more thorough assessment of specific risks. Compiled lists of factors determining the risk of material misstatement and specific risks can be useful for auditors of audit companies to assess the risk of material misstatement of financial statements. https://www.zurnalai.vu.lt/BATP/article/view/30236risk of material misstatementspecific risksrisk factorsaudit |
| spellingShingle | Deimantė Žukauskaitė Dalia Daujotaitė Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements Buhalterinės Apskaitos Teorija ir Praktika risk of material misstatement specific risks risk factors audit |
| title | Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements |
| title_full | Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements |
| title_fullStr | Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements |
| title_full_unstemmed | Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements |
| title_short | Identification of Material Misstatement and Specific Risk Factors in an Audit of Financial Statements |
| title_sort | identification of material misstatement and specific risk factors in an audit of financial statements |
| topic | risk of material misstatement specific risks risk factors audit |
| url | https://www.zurnalai.vu.lt/BATP/article/view/30236 |
| work_keys_str_mv | AT deimantezukauskaite identificationofmaterialmisstatementandspecificriskfactorsinanauditoffinancialstatements AT daliadaujotaite identificationofmaterialmisstatementandspecificriskfactorsinanauditoffinancialstatements |