An Intertemporal Model of Earnings Components in Fixed Income Portfolios: Implications for Risk Assessment and Financial Statement Presentation

2009 ◽  
Author(s):  
James Cataldo
Keyword(s):  
Risk Assessment ◽  
Financial Statement ◽  
Fixed Income ◽  
Earnings Components ◽  
Intertemporal Model

Business Modeling to Improve Auditor Risk Assessment: An Investigation of Alternative Representations

2014 ◽  
Vol 28 (2) ◽  
pp. 231-256 ◽  
Author(s):  
J. Efrim Boritz ◽  
Carla Carnaghan ◽  
Paulo S. Alencar
Keyword(s):  
Risk Assessment ◽  
Business Model ◽  
Business Models ◽  
Financial Statement ◽  
Alternative Methods ◽  
Audit Risk ◽  
Strategic Goals ◽  
Diagrammatic Representations ◽  
Model Components ◽  
The Relationship

ABSTRACT This study investigates the effects of alternative methods for documenting business models on audit risk assessment behavior. We consider tabular versus diagrammatic representations of the relationship between business model components such as environmental factors, strategic goals, internal processes and resources, and financial statement accounts. Multiple scenarios based on a real company were constructed and 24 participants, including audit partners, managers, and novice auditors performed a risk assessment for each scenario, presented in either a diagrammatic or a tabular format. The participants' verbal discussions as they performed the risk assessments were tape recorded, transcribed, and coded. A content analysis of the participants' coded verbal behavior indicates that the tabular presentation appears to elicit more frequent mention of accounts by the participants, while the diagram format leads to more mentions of other business model components. There is also some evidence of expertise effects. This study indicates that a tabular presentation can possess many of the benefits often associated with a diagrammatic representation. However, in our study, obtaining such benefits involved the deliberate structuring of the tabular presentation to organize the components of the business model and the links between them and financial statement accounts.

Ramm Wholesale: Reviewing Audit Work (Retracted)

2013 ◽  
Vol 28 (3) ◽  
pp. 629-636 ◽  
Author(s):  
Douglas Kalesnikoff ◽  
Fred Phillips
Keyword(s):  
Risk Assessment ◽  
Real Time ◽  
Read Aloud ◽  
Financial Statement ◽  
Financial Statement Audit ◽  
Audit Strategy

ABSTRACT: Designed to be used in an undergraduate or Master's auditing course, this Case asks students to evaluate work performed on the financial statement audit of a private wholesale merchandiser. Through this evaluation, students can uncover issues relating to gaining knowledge of a client and its environment, risk assessment, materiality, audit strategy, and specific audit procedures for the revenue/receivables/receipts accounting cycle. The Teaching Notes provide support both for instructors who ask students to prepare the Case in advance of class and for instructors who instead assign the Case for analysis in real-time during class, whereby the Case is read aloud paragraph-by-paragraph and issues are discussed as they are detected.

Financial statement recasting and credit risk assessment

2012 ◽  
Vol 54 (1) ◽  
pp. 47-82 ◽  
Author(s):  
George Batta ◽  
Ananda Ganguly ◽  
Joshua Rosett
Keyword(s):  
Risk Assessment ◽  
Credit Risk ◽  
Financial Statement ◽  
Credit Risk Assessment

scholarly journals Examination of the Notes to the financial statement through the example of enterprises engaged in sports activities

Economica ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 61-66
Author(s):  
Veronika Fenyves ◽  
Dóra Kerezsi ◽  
Éva Bácsné Bába ◽  
Krisztina Dajnoki ◽  
Zoltán Bács ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Balance Sheet ◽  
Public Information ◽  
Numerical Data ◽  
Financial Statement ◽  
Efficient Operation ◽  
Market Participants ◽  
Primary Activity ◽  
A Company ◽  
Sports Activities

In the globalized and accelerated world of our time, it is essential that enterprises have up-to-date information. Only a company that is in possession of the necessary information is able to meet the challenges of business life. One source of public information might be the annual statement prepared and published in accordance with the stipulations of Act C of 2000. The annual statement consists of three parts: the balance sheet, the profit and loss account and the notes to the financial statement. The text-based information of the notes to the financial statement are for the more accurate interpretation of numerical data. The notes to the financial statement of certain market participants (consumers, suppliers, competitors, etc.) might support efficient operation of companies, their proper decision-making and risk assessment. In present study, the notes to the financial statement of companies identifying sports activities (Hungarian NACE 931) as their primary activity were utilized. By means of text mining, it was examined what information these notes to the financial statement include from amongst the mandatory information required by the Accounting Act.

Dickinson Technologies, Inc.: Assessing Control Environment and Fraud Risk

2003 ◽  
Vol 18 (1) ◽  
pp. 71-78 ◽  
Author(s):  
Christopher P. Agoglia ◽  
Kevin F. Brown ◽  
Dennis M. Hanno
Keyword(s):  
Risk Assessment ◽  
Internal Control ◽  
Financial Statement ◽  
Risk Assessments ◽  
Background Information ◽  
Control Environment ◽  
Abstract Concepts ◽  
Fraud Risk ◽  
Financial Statement Audit ◽  
Fraud Risk Assessments

This instructional case provides you an opportunity to perform realistic audit tasks using evidence obtained from an actual company. Through the use of engaging materials, the case helps you to develop an understanding of the control environment concepts presented in SAS No. 78 (AICPA 1995), Consideration of Internal Control in a Financial Statement Audit, and fraud risk assessment presented in SAS No. 99 (AICPA 2002), Consideration of Fraud in a Financial Statement Audit. This case involves making a series of fraud risk assessments based on company background information and a detailed and realistic control environment questionnaire, which provide you a context that makes the often abstract concepts relating to control environment and fraud risk assessment more concrete.

Bitcoin and Blockchain: Audit Implications of the Killer Bs

2020 ◽  
Author(s):  
Ryan T Dunn ◽  
J. Gregory Jenkins ◽  
Mark D. Sheldon
Keyword(s):  
Risk Assessment ◽  
Learning Experience ◽  
Learning Objectives ◽  
Financial Statement ◽  
Class Discussion ◽  
Online Retailer ◽  
Student Responses ◽  
Class Assignment

This case examines auditing implications of Bitcoin and blockchain, and is intended for either undergraduate or graduate auditing and assurance courses. Students are asked to engage in aspects of planning and risk assessment for the audit of an online retailer. The case provides an interesting setting to achieve the learning objectives of: 1) identifying risks of material misstatement, 2) linking risks of material misstatement to relevant financial statement assertions, 3) explaining changes in audit procedures for responding to risks, 4) understanding a financial statement auditor's use of service auditor reports, and 5) understanding management specialists and the role they play in an audit. The modular case can be used for in-class discussion or as an out-of-class assignment and requires minimal advance preparation by the instructor. The case may be assigned in part or in its entirety. Student responses indicate the case is interesting and offers a positive learning experience.

Audit Risk Assessments Using Belief versus Probability

2011 ◽  
Vol 30 (1) ◽  
pp. 75-99 ◽  
Author(s):  
Hironori Fukukawa ◽  
Theodore J. Mock
Keyword(s):  
Risk Assessment ◽  
Risk Measure ◽  
Program Planning ◽  
Financial Statement ◽  
Risk Assessments ◽  
Audit Risk ◽  
Assessment Approach ◽  
Audit Effectiveness ◽  
Audit Program ◽  
Negative Form

SUMMARY: Important audit judgments concerning client selection, audit program planning, and risk assessment all may be impacted by the approach taken to assess risk and to interpret audit evidence. This experimental study examines whether auditors’ risk assessments are influenced by the risk assessment approach and by assertion framing. Risk assessment approach was manipulated by eliciting belief-based versus probability-based risk assessments. Assertion framing was manipulated by stating the financial statement assertions to be examined in a positive versus negative form. Four measures of risk of material misstatement are compared, including one based on the Cobb and Shenoy (2003a, 2003b, 2006) transformation of beliefs into “probabilities.” Both risk assessment approach and assertion framing effects on the auditors’ risk assessments are observed. Given these significant differences, the risk measure(s) the auditor chooses to focus on and the way assertions are framed are shown to be important audit choices in that such choices may impact both audit effectiveness and efficiency.

ABC Electronics: An Instructional Case Illustrating Auditors' Use of Preliminary Analytical Procedures

2014 ◽  
Vol 8 (1) ◽  
pp. I1-I10 ◽  
Author(s):  
Paul M. Clikeman ◽  
Jamie Diaz
Keyword(s):  
Risk Assessment ◽  
Financial Statements ◽  
Consumer Electronics ◽  
Financial Statement ◽  
Planning Stage ◽  
Excel Spreadsheet ◽  
Financial Statement Audit ◽  
Analytical Procedures

SUMMARY This instructional case demonstrates auditors' use of analytical procedures during the planning/risk assessment phase of a financial statement audit. An Excel spreadsheet enables instructors to embed up to seven operating problems or potential accounting issues into a fictitious consumer electronics manufacturer's current year financial statements. Questionnaires from students at two universities indicate that the case is effective at helping undergraduate auditing students understand (1) auditors' use of analytical procedures during the planning stage of the audit, and (2) the types of accounting issues and operating problems that might be identified using analytical procedures.

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