Faulty Audits Threaten Financial Stability, Warn Experts
The article discusses the importance of audit quality and how auditors assess audit risk to ensure effective audit procedures. It explores the relationship between audit risk and audit fees, the evaluation of audit risk in client-acceptance decisions, and the impact of audit risk on corporate governance. The study also proposes a new way to measure audit risk, considering both qualitative factors like corporate governance and internal controls, and quantitative factors like company size.