The Effect of Alternative Business Model Representation Techniques on Business and Audit Risk Assessment

2013 ◽  
Author(s):  
J. Efrim Boritz ◽  
Kun Huo
Keyword(s):  
Risk Assessment ◽  
Business Model ◽  
Model Representation ◽  
Audit Risk ◽  
Representation Techniques

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.

Auditors and the Principal-Principal Agency Conflict in Family Controlled Firms

2020 ◽  
Vol 39 (4) ◽  
pp. 31-55
Author(s):  
Chiraz Ben Ali ◽  
Sabri Boubaker ◽  
Michel Magnan
Keyword(s):  
Risk Assessment ◽  
Negative Relationship ◽  
Audit Fees ◽  
Data Availability ◽  
Audit Risk ◽  
Controlling Shareholder ◽  
Voting Power ◽  
The Public ◽  
Agency Conflict ◽  
Jel Classifications

SUMMARY This paper examines whether multiple large shareholders (MLS) affect audit fees in firms where the largest controlling shareholder (LCS) is a family. Results show that there is a negative relationship between audit fees and the presence, number, and voting power of MLS. This is consistent with the view that auditors consider MLS as playing a monitoring role over the LCS, mitigating the potential for expropriation by the LCS. Therefore, our evidence suggests that auditors reduce their audit risk assessment and audit effort and ultimately audit fees in family controlled firms with MLS. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G32; G34; M42; D86.

The Value of Choices

2019 ◽  
pp. 150-177
Author(s):  
Fabian Salum ◽  
Karina Garcia Coleta ◽  
Dalini Ferraz ◽  
Humberto Elias Garcia Lopes
Keyword(s):  
Comparative Analysis ◽  
Business Model ◽  
Value Creation ◽  
Model Representation ◽  
Business Model Canvas ◽  
Core Elements ◽  
New Framework

Scholars and practitioners have proposed different frameworks to make business model representation easier. However, more information is still required to understand their applicability, especially concerning value perspective. This chapter focus on three of them: the Choices/Consequences, the RCOV, and the Business Model Canvas. This chapter (1) provides a comparative analysis; (2) discusses their design under the concept of value creation; (3) synthesises a new structure which contemplates their core elements, goes beyond their limitations and constitutes an alternative and useful tool. The new framework is called ‘(the) value of choice's (VoC). It points out – but is not limited to – the value offering architecture and enables strategic analysts to keep focus on a broad range of value outcomes: created value, appropriated value, generative value, and distributed value. The VoC is illustrated with a Brazilian tourism company's case.

AuthBridge Research Services Pvt. Ltd

2019 ◽  
pp. 1-15
Author(s):  
Promila Agarwal ◽  
Amit Karna
Keyword(s):  
Risk Assessment ◽  
Emerging Markets ◽  
Business Model ◽  
New Venture ◽  
Classroom Discussions ◽  
Serial Entrepreneur ◽  
Set Up

AuthBridge is a leading Background Screening & Risk Assessment Company. Founded in 2005, its mission is to be among the top and dominant in every line of business it undertakes with its creative, continually improving solutions. AuthBridge has 200 clients in 2015, and wishes to grow to serve 2000 clients by 2020. The case outlines the process it has adopted till date, and the journey of entrepreneur in terms of how he reached there. The founder faces the dilemma of whether he should scale this business model in other countries (emerging markets?) and what part of his model should be imitated and what part adapted. Through this case learners can understand the entrepreneurial journey of a serial entrepreneur and how he identified an opportunity in the market. The case also enables classroom discussions on developing a business model from the scratch, and how to set up efficient processes in a new venture.

scholarly journals Internal audit risk assessment and legal risk: First evidence in the Italian experience

2007 ◽  
Vol 4 (4) ◽  
pp. 59-77
Author(s):  
Angelo Miglietta ◽  
Mario Anaclerio ◽  
Cristina Bettinelli
Keyword(s):  
Risk Assessment ◽  
Internal Audit ◽  
Audit Risk ◽  
Legal Risk ◽  
Audit System ◽  
Italian Experience ◽  
Risk Optimization ◽  
Sarbanes Oxley ◽  
Management Optimization ◽  
The Cost

The objective of this article is to analyze how Italian Firms comply with the Internal Audit rules regarding the administrative liability of entities and to explain what the effect on the organizational structure was. In particular we collected data from 21 companies listed on the S&P/MIB index by sending a questionnaire to each Internal Audit Director. We show the features of internal audit system required by the 231 Italian Decree and how risk assessment and internal audit could serve as Corporate Governance Instruments. The 231 Italian Decree, like the Sarbanes-Oxley Act enhances and extends companies’ accountability, transparency and integrity especially in business conduct. The innovativeness of this work is due to the idea of considering these elements as influential for the risk management optimization. As a consequence, a risk reduction can be achieved by improving the organizational and management models. Thought is commonly accepted that the risk optimization leads to a reduction of the cost of capital for the enterprise, there is a difficulty in estimating how much the value provided could be

scholarly journals Determinants of audit risk assessment for governmental audits in Indonesia: a study of the national audit board of the republic of Indonesia

2015 ◽  
Vol 13 (1) ◽  
pp. 379-388
Author(s):  
Agung Nur Probohudono ◽  
Payamta ◽  
Sri Hantoro
Keyword(s):  
Risk Assessment ◽  
Risk Model ◽  
National Audit ◽  
Audit Risk ◽  
Factors Affecting ◽  
And Topology ◽  
Audit Risk Model ◽  
The Republic ◽  
Expertise Level

This study aimed to determine the influence of: geography, demography and topology; culture; maturity of organization (age of government); maturity of people; auditor’s capability in the assigned region; expertise / education level; and experience of auditing team in risk assessment; on the examination of audit risk by The National Audit Board of The Republic of Indonesia (Badan Pemeriksa Keuangan (BPK) in Indonesia. This study found the factors affecting the audit risk model in general. This study identified several factors that influence the determination of audit risk assessment which occur when conducting local governmental audits in Indonesia. This study was conducted by identifying the factors that might influence the risk of audit used by The National Audit Board. The results of the identification are elaborated in some of the items included in the questionnaire. The number of respondents in this study was 143 respondents as Auditors of The National Audit Board in Indonesia. This study conducted multiple regression analysis. Maturity of people, auditor’s capability, and expertise level have a significant influence on the risk assessment. These factors are derived from an auditor’s judgment when they perform the examination seen from the condition of local government in Indonesia

scholarly journals Impact of technical and professional developments on audit risks Review study

2021 ◽  
Vol 3 (1) ◽  
pp. 1-12
Author(s):  
Waheed Mahmood Ramo ◽  
Abdulwahid Ghazi Mohammed
Keyword(s):  
Risk Assessment ◽  
Cloud Computing ◽  
Corporate Governance ◽  
Electronic Commerce ◽  
Fair Value ◽  
Audit Risk ◽  
Review Study

The research provides an attempt to identify the effects of technical and professional developments on audit risks, important of these developments are cloud computing, blockchain, electronic commerce, fair value and corporate governance. Considering that these developments represent the modern environment for auditing in general and auditing risks in particular. Therefore, the nature of these developments and their relationship to auditing and their impact on audit risks have been clarified, leading to the determination of the implications of these developments on audit risks and the requirements to keep up with developments (technical and professional) in the field of audit risk assessment.

scholarly journals METHODOLOGICAL ASPECTS OF EVALUATION OF RISK IN AUDIT

2018 ◽  
pp. 142-147
Author(s):  
Roman Kulyk ◽  
Yuliia Novak
Keyword(s):  
Risk Assessment ◽  
Audit Process ◽  
Audit Risk ◽  
The Real ◽  
Methodological Aspects

Audit is always accompanied by an appropriate audit risk. There is currently no practical way to reduce it to zero. Domestic and foreign experts point out that audit risk belongs to one of the fundamental and complex categories of audit, and its identification and evaluation are considered the key elements of the audit process. Audit risk by its nature implies uncertainty, so its assessment may not be ideal. Any method of risk assessment aims to maximize the approach to the real result, but does not allow avoiding errors.

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