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Business risk auditing: A regressive evolution?—A research note

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  • Flint, Christine
  • Fraser, Ian A.M.
  • Hatherly, David J.

Abstract

Business risk auditing (BRA) has been much publicised as revolutionary. The essence of the phenomenon, and the actual impact on practice, however, are unclear. This note revisits some pre-BRA interview evidence investigating auditor engagement with business risk. The evidence suggests that, pre-BRA, big-six auditors were already familiar with concepts of business risk although they were uncertain as to how precisely business risk informed the audit process. This suggests that BRA was evolutionary, rather than revolutionary, change and that the engagement of recent international standards with business risk is not significantly different from that of big-six auditors pre-BRA. The BRA era in audit methodology might be conceptualized as one of regressive evolution.

Suggested Citation

  • Flint, Christine & Fraser, Ian A.M. & Hatherly, David J., 2008. "Business risk auditing: A regressive evolution?—A research note," Accounting forum, Elsevier, vol. 32(2), pages 143-147.
    • Handle: RePEc:eee:accfor:v:32:y:2008:i:2:p:143-147
    DOI: 10.1016/j.accfor.2007.12.001
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    References listed on IDEAS

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    1. Rihab Khalifa & Nina Sharma & Christopher Humphrey & Keith Robson, 2007. "Discourse and audit change," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 20(6), pages 825-854, October.
    2. Knechel, W. Robert, 2007. "The business risk audit: Origins, obstacles and opportunities," Accounting, Organizations and Society, Elsevier, vol. 32(4-5), pages 383-408.
    3. Robson, Keith & Humphrey, Christopher & Khalifa, Rihab & Jones, Julian, 2007. "Transforming audit technologies: Business risk audit methodologies and the audit field," Accounting, Organizations and Society, Elsevier, vol. 32(4-5), pages 409-438.
    4. Curtis, Emer & Turley, Stuart, 2007. "The business risk audit - A longitudinal case study of an audit engagement," Accounting, Organizations and Society, Elsevier, vol. 32(4-5), pages 439-461.
    5. Power, Michael K., 2003. "Auditing and the production of legitimacy," Accounting, Organizations and Society, Elsevier, vol. 28(4), pages 379-394, May.
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    1. Barone, Elisabetta & Ranamagar, Nathan & Solomon, Jill F., 2013. "A Habermasian model of stakeholder (non)engagement and corporate (ir)responsibility reporting," Accounting forum, Elsevier, vol. 37(3), pages 163-181.

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