Abstract:

The modern theory and practice for assessing audit risk makes it possible to use large amounts of information contained in the information network of the Internet. The problem remains the selection of indicators and factors which have a significant influence on the valuation of risk, and consequently on the managing of, above all, operational risks, and on determining a cause-effect relation between the audit entities and the conclusions of the audit report.  We propose using the elements for modeling audit risk values that determine the cause-effect relation between the factors and indicators of threshold audit risk values. Under this methodology, we propose placing factors and indicators into groups to determine possible threshold values for certain assessment methods. We demonstrate the use of this methodology with examples relating to the use of different methods of audit risk assessment.