Research by Mark Beasley, Deloitte Professor of Enterprise Risk Management and director of the Enterprise Risk Management Initiative based in the NC State Poole College of Management, is one of three projects awarded ongoing funding by the American Institute of CPAs Assurance Research Advisory Group (ARAG).
“Having access to practicing CPAs, provided by the AICPA’s ARAG program, is critical to our ability to gain a rich, in-depth understanding about how auditors assess risks of material misstatements when planning the audit of a client’s financial statements,” Beasley said. “This research opportunity allows us to observe challenges auditors face in designing their audit procedures to respond to risks observed by them. Our hope is that this project will help highlight effective techniques auditors use to address those challenges so that the audit profession continue to enhance the quality of the audit process.”
Beasley is collaborating with Omar Watts, PhD, CPA, assistant professor of accounting at St. John Fisher College, on this project, titled: “Analyzing the Audit Risk Assessment Process: Real World Insights.”
The AICPA and ARAG had received 16 submissions for its second year of supporting research that addresses assurance topics of interest and importance to the CPA profession.
All proposals were related to:
- Audit Quality
- Evolving Skillsets
- Risk Assessment and Response
- Sufficiency and Appropriateness of Audit Evidence
ARAG also selected the following research projects for approval:
“Auditing with Data and Analytics: External Reviewer Perceptions of Audit Quality” by Scott Emett, Ph.D., Assistant Professor, Arizona State University; Steven Kaplan, Ph.D., Director and KPMG Professor of Accountancy, Arizona State University; Jeffrey Pickerd, Ph.D., Assistant Professor, University of Mississippi and Elaine G. Mauldin, Ph.D., CPA, BKD Professor of Accountancy, University of Missouri.
“Non-Global Network Firms’ Use of Technology-Based Audit Tools and Implications for Audit Quality” by Jay C. Thibodeau, PhD, CPA, Rae D. Anderson Professor of Accountancy, Bentley University and Annie L. Witte, PhD Student, Bentley University.
“We thank all who submitted proposals,” said Susan S. Coffey, CPA CGMA, Association of International Certified Professional Accountants’ Executive vice president for public practice. “Audit data analytics, risk assessment, and the use of technology – topics that will be addressed in this latest round of research – are important facets of our Enhancing Audit Quality initiative. The three selected projects have the potential to provide important audit and assurance insights.”