Risk Analysis in Financial Audit using the Trust Function Method
Author:
Florentin-Emil TANASA, Florian Marcel NUTA
JEL:
M41, M48
DOI:
10.20869/AUDITF/2020/159/018
Keywords:
audit risk; trust functions; audit mission; audit objectives; professional judgment
Abstract:
With a strong expansion of the competitive environment in almost all sectors, the key resource for competitiveness is information, which becomes a value for the economic entity and society at large when it contributes positively to the objectives. This article has as its primary objective the presentation of an approach to the documentation and risk assessment by financial auditors using the method of trust functions. In the area of financial audit, risk assessment and quantification shall form the basis for planning, carrying out of the mission, obtaining audit evidence and expressing opinion. Based on the literature synthesis, the research undertaken aimed to ensure that audit evidence is represented as a network of interconnected variables, statements about the synthesis documents for which the mission team collects evidence to determine whether or not they are correctly presented. The method of the services of assignment gives an important role to professional judgment when planning and during the course of the mission.
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Article(468KB)