Introduction and Testing of the Application of a Risk-Based Model in Operational Auditing

Subject Areas : Futurology

H. R. Vakilifard ^{1 *} , M. Salahinejad ²

1 - نویسنده مسئول یا طرف مکاتبه:
2 - ندارد

Received: 2008-08-02 Accepted : 2009-02-22 Published : 2009-12-22

Keywords: Operational Auditing, Risk- based Auditing, Acceptable Auditing Risk, Acceptable Level of&#x0D, &#x0D, Assuranc, Audit Evidence, Materiality, Efficiency, Effectivness, Economy,

Abstract :

The main objective of this dissertation is the introduction of a risk-based model for operationalauditing and testing its application in solving problems such as amount of fee, verification timeallocation and planning of an operational audit engagement. The Government Audit Organizationstandards on risk concept, evidence and materiality are applied in the introduced model. The riskbasedmodel, as a tool of planning, assists the auditors in proceeding to an acceptable assurance level.The introduced model is applied in seven audit engagement and collected data from those engagementare compared with 10 audit engagement performed by Audit Organization during 2001 to 2007 andeffectivness, efficiency and economy of the model is measured. Effectiveness is defined as theaccomplished results, efficiency is defined as the way that results are accomplished and economy isdefined as the reduction of cost of the engagements.This research is qualitative, application oriented and based on constructivism philosophy . Theapproach of the research is deduction- induction and the strategy of the study is action research. Timehorizon of research is longitudal. In order to test the hypothesis , essential data is collected by likertquestionnaire and verification evidence of audits files. In this research SPSS NO.13 and Mann-Whitney and Wilcoxon non-parametric tests are used.The results of the study confirms following the hypothesis of the dissertation as follows:Using risk – based model increase the acceptable level of assurance, acceptable level of materialityand facilitates the preparation of the budget on the basis of the standards of operational auditingprocess.Using the risk- based model increases the efficiency index of "number of deficiencies / number ofteams member" and "number of offers / number of teams member" in operational auditing process.Using the risk- based model decreases the economy index of " actual hours / budgeted hours " inoperational auditing process.