Abstract Background & Problem: Risk assessment is a central part of the audit process. Previous audit failures have increased the importance further. Several suggested determinants of risk assessments have been explored within literature. However, literature has not up until now explored what reflection environmental uncertainty has on the risk assessment process. Due to the ongoing pandemic, COVID-19, the opportunity to explore the reflection of uncertainty has been made feasible. Purpose: The purpose of this study is to explore how societal challenges reflect on auditors’ risk assessments of entities. The thesis is conducted using COVID-19 as an event signifying societal challenge. Methodology: This thesis uses an exploratory and abductive research approach. With a qualitative strategy, empirical data has been collected through semi-structured interviews with authorized auditors as participants. Findings: Our findings conclude that the four aspects being firm, environment, individual, and audit client together form the risk assessment. In contrast to literature, the audit client aspect was argued as more important. Further, environmental uncertainty is reflected in risk assessments through these four aspects and can affect each aspect individually in various ways. Future research: Since this study explores reflections of a crisis, while it is still present, we would find it interesting to examine its aftermath. In line with previous literature and our empirical findings, we foremost would suggest future researchers to explore the impact of a societal challenge on audit quality and whether differences are present concerning audit firm size.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-53095 |
| Date | January 2021 |
| Creators | Klasson, Linnea, Knutsson, Lovisa |
| 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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