The Effect of Using the Strategy Analysis Approach to Measure Business Risk on the Quality of the Audit Process
DOI:
https://doi.org/10.56830/IJAMS07202203Keywords:
Strategy Analysis Approach, Business Risk, Audit ProcessAbstract
The study aims to Identify business risks facing the auditor when performing the audit, contribute to enhancing the auditor’s efficiency through business strategy analysis for the purpose of enhancing predictive ability when judging the continuity of the enterprise and Improve the quality of the audit process, narrow the expectations gap in the audit process to the required level and produce outcomes and recommendations to improve the performance of audit offices. The data was mainly collected through a field research, The study reached a set of results, the most important of them, The results of the statistical analysis showed “the existence of a statistically significant relationship at the level 0.05 between the independent axes (Client strategy analysis, Risk of material misstatements in the financial statements, inevitable risk during the audit process, the risk of auditor’s assessment of the internal control environment, and the risk of the auditor performing the audit tests) and increasing the efficiency and effectiveness of the audit process” . This result is consistent with the main study Hypotheses , It was revealed that, through client strategy analysis, auditors are more able to detect internal and external strategic risks for the client, and therefore increasing the efficiency and effectiveness of the audit process, Avoiding any material misstatements in the financial statements and increasing the auditors’ ability to detect material misstatements leads to a reduction in the inevitable risk and The importance of increasing analytical tests during the audit process in order to minimize the risk of audit tests to the lowest limit as this contributes to increasing the efficiency and effectiveness of the audit process.
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