Background: Research has shown that the risk of material misstatements increases during exogenous risk shocks. Simultaneously, auditors shall identify and assess the emergent risks. During the GFC, auditors' response was considered satisfactory by some but criticized byothers. Covid-19 presents a new exogenous risk shock which should entail a similar response by auditors. Purpose: The purpose of this study is to determine the effect that exogenous risks during uncertain economic times have on the risk- and materiality assessments of auditors. Further, to determine if auditor independence and trait scepticism affect the relationship between exogenous risk and risk- and materiality assessments. Methodology: This study used a quantitative method by sending out questionnaires to Swedish authorized and approved auditors. The answers were analysed through Spearman correlation matrixes, Paired-samples T-tests, Ordinary Least Squares (OLS) regressions and a binary logistics regression. This study is based on a positivistic perspective and a deductive approach was used. Conclusion: The findings indicated that auditors did make more conservative risk assessments in response to the Covid-19 pandemic. However, they did not adjust the materiality assessments nor performance materiality assessments significantly. Moreover, that the individually situated factors of auditors had impact on the assessments during the pandemic.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-60798 |
| Date | January 2023 |
| Creators | Brissman, Adam, Watson, Thomas |
| Publisher | Jönköping University, IHH, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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