Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders

In evaluating a business based on the business risk audit (BRA) approach, auditors should define and perceive strategic management control techniques and operating processes. They should also select risk control processes in vital operating processes to estimate the type and magnitude of residual bu...

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Main Authors: Shoeyb Rostami OstadKelayeh, Mohammad Ali Aghaei, Kumars Biglar
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2022-12-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_42129_616ccbdcef1128d227150090d46c747f.pdf
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author Shoeyb Rostami OstadKelayeh
Mohammad Ali Aghaei
Kumars Biglar
author_facet Shoeyb Rostami OstadKelayeh
Mohammad Ali Aghaei
Kumars Biglar
author_sort Shoeyb Rostami OstadKelayeh
collection DOAJ
description In evaluating a business based on the business risk audit (BRA) approach, auditors should define and perceive strategic management control techniques and operating processes. They should also select risk control processes in vital operating processes to estimate the type and magnitude of residual business risks that might affect the accuracy and fairness of financial statements. Given the international re-emergence of BRA concepts in recent years, this approach is considered an essential innovation in the auditing methodology. This study aims to analyze the attitude of Iranian auditing experts toward the BRA efficiency for stakeholders. For this purpose, a researcher-made questionnaire was designed in three dimensions: normative legitimacy of BRA, pragmatic legitimacy of BRA, and cognitive legitimacy of BRA (per dimensions of the legitimacy theory proposed by Greenwood, Suddaby & Hinings, 2002). The questionnaire was then distributed to a research sample including the Partners, Audit Org., and IACPA obtained at the end of 2021; the research results indicated that the BRA approach had normative legitimacy (m= 3.61), pragmatic legitimacy (m= 3.78), and cognitive legitimacy (m= 3.29) in Iran for the opinions of experts and statistical findings. Given the flaws and shortcomings of Iran’s current auditing framework, integrating the BRA approach into the current framework will be promising. At the same time, this approach can prevent over-auditing due to its proven inherent value. It can also be considered a naturally correct method of auditing.
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spelling doaj-art-442da2a60d894b4da3f97f69401f427d2024-12-25T06:52:55ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422022-12-01648110010.22067/ijaaf.2022.4212942129Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for StakeholdersShoeyb Rostami OstadKelayeh0Mohammad Ali Aghaei1Kumars Biglar2Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, IranDepartment of Accounting, Modares University, Tehran, IranDepartment of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, IranIn evaluating a business based on the business risk audit (BRA) approach, auditors should define and perceive strategic management control techniques and operating processes. They should also select risk control processes in vital operating processes to estimate the type and magnitude of residual business risks that might affect the accuracy and fairness of financial statements. Given the international re-emergence of BRA concepts in recent years, this approach is considered an essential innovation in the auditing methodology. This study aims to analyze the attitude of Iranian auditing experts toward the BRA efficiency for stakeholders. For this purpose, a researcher-made questionnaire was designed in three dimensions: normative legitimacy of BRA, pragmatic legitimacy of BRA, and cognitive legitimacy of BRA (per dimensions of the legitimacy theory proposed by Greenwood, Suddaby & Hinings, 2002). The questionnaire was then distributed to a research sample including the Partners, Audit Org., and IACPA obtained at the end of 2021; the research results indicated that the BRA approach had normative legitimacy (m= 3.61), pragmatic legitimacy (m= 3.78), and cognitive legitimacy (m= 3.29) in Iran for the opinions of experts and statistical findings. Given the flaws and shortcomings of Iran’s current auditing framework, integrating the BRA approach into the current framework will be promising. At the same time, this approach can prevent over-auditing due to its proven inherent value. It can also be considered a naturally correct method of auditing.https://ijaaf.um.ac.ir/article_42129_616ccbdcef1128d227150090d46c747f.pdfauditee business riskaudit institutionsaudit efficiencylegitimacy of brarisk of material misstatement
spellingShingle Shoeyb Rostami OstadKelayeh
Mohammad Ali Aghaei
Kumars Biglar
Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
Iranian Journal of Accounting, Auditing & Finance
auditee business risk
audit institutions
audit efficiency
legitimacy of bra
risk of material misstatement
title Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
title_full Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
title_fullStr Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
title_full_unstemmed Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
title_short Analyzing the Attitude of Iranian Auditing Experts toward the Business Risk Audit Efficiency for Stakeholders
title_sort analyzing the attitude of iranian auditing experts toward the business risk audit efficiency for stakeholders
topic auditee business risk
audit institutions
audit efficiency
legitimacy of bra
risk of material misstatement
url https://ijaaf.um.ac.ir/article_42129_616ccbdcef1128d227150090d46c747f.pdf
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AT kumarsbiglar analyzingtheattitudeofiranianauditingexpertstowardthebusinessriskauditefficiencyforstakeholders