Design of Decision Support System for Audit Plan and Risk Assessment

• In Event: SET Dialogue

Abstract

Audit decision support systems are specialized technology that can be used by audit firms to facilitate and support their audit work. With technological advances, audit firms tend to increase the level of decision support embedded within their firm’s existing audit support system. Brainstorming meeting is an important step in the audit plan and risk assessment process, during which the engagement team updates their understanding of the client and discusses the susceptibility of the entity’s financial statements to material misstatement, either caused by error or fraud. One of the most commonly used methods used by audit firms in this process is the discussion topic checklist. To improve the effectiveness and efficiency of audit plan and risk assessment discussion, this study proposes an interactive audit decision support system. The proposed system will help the engagement team evaluate client information, identify and rank risks, and make subsequent judgments with respect to risk assessment.

Authors

• Qiao Li, Rutgers Business School

• Miklos A Vasarhelyi, Rutgers University - Newark