Title: Business risks and auditor decisions: evidence from Tunisia

Authors: Imen Thabet

Addresses: Laboratory of Finance Governance Accounting, Faculty of Economics and Management of Sfax, University of Sfax, Tunisia

Abstract: The aim of this exploratory research is to investigate the nature of planned audit procedures underlying each auditee business risk factor in the Tunisian context. An experimental study has been conducted based on an analysis of 47 Tunisian auditors' responses. The current study uses a questionnaire survey. The questionnaire contains a description of fictitious case of Tunisian company which operates in mechanicals and basic metals industry specialised on machinery and equipment manufactory. Survey participants are conducted, in the first time, to examine the case of company, to identify potential business risk factors that can affect the company, and to plan the most appropriate audit procedures in response to each business risk factor, in the second time. The results show that in Tunisia, auditors tend to plan analytical procedures in response to business risks factors related to the business and operations of the company, test of control in response to accounting indicators as business risks factors, and test of details in response to business risks factors associated to external and regulatory environments.

Keywords: business risks; risk audit; audit procedures; Tunisia; auditing; machinery and equipment manufacture.

DOI: 10.1504/AJAAF.2014.069848

African Journal of Accounting, Auditing and Finance, 2014 Vol.3 No.4, pp.308 - 328

Received: 28 Mar 2015
Accepted: 30 Mar 2015

Published online: 13 Jun 2015 *

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