TY  - CHAP
AB  - This study examines auditors' evaluation of audit risk at the financial statement level (risk of material misstatements). Specifically, the study investigates whether perceived audit risk is influenced by individual differences (e.g., tolerance-for-ambiguity (TFA) and experience), and changes in industry risk. Forty-eight auditors from two offices of a “Big Five” CPA firm participated in this study.The results of this study support the contention that TFA significantly influences the assessment of audit risk. Auditors with a high TFA perceived less audit risk than auditors with a low TFA. Industry risk also is shown to have a significant influence on the assessment of audit risk at the financial statement level. Higher industry risk was found to be associated with higher perceived audit risk. Lastly, the results indicate that audit experience is not a significant factor in explaining perceived audit risk. Important implications from these results for the overall audit process are provided.
VL  - 3
SN  - 978-1-84950-055-5, 978-0-76230-668-8/1475-1488
DO  - 10.1016/S1474-7979(00)03026-X
UR  - https://doi.org/10.1016/S1474-7979(00)03026-X
AU  - Makkawi Bilal A.
AU  - Rutledge Robert W.
PY  - 2000
Y1  - 2000/01/01
TI  - Evaluating audit risk: The effects of tolerance-for-ambiguity, industry characteristics, and experience
T2  - Advances in Accounting Behavioral Research
T3  - Advances in Accounting Behavioural Research
PB  - Emerald Group Publishing Limited
SP  - 69
EP  - 89
Y2  - 2024/04/25
ER  -