International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Effective Structures on Implementation of Risk- based Audit Approach to improve Audit Quality

Document Type : Original Article

Authors
Niloofar Arij 1
Arefeh Mohaghegh 2
Ali Rezaei 3
Mohammad Hassani 4
1 PhD Student in the Department of Accounting, North Tehran Branch, Islamic Azad University, Tehran, Iran.
2 Assistant Professor, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran.
3 Assistant Professor, Department of Finance and Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.
4 Assistant Professor, Department of Accounting, North Tehran Branch, Islamic Azad University, Tehran, Iran.
10.22034/ijfma.2025.78267.2230
Abstract
The present study has analyzed the identification of effective structures on the implementation of the risk-based audit approach in order to improve the quality of independent auditing. In terms of approach, the present study is exploratory in the qualitative and interview part and descriptive-causal research in the quantitative part.
The statistical population of this study; was all certified public accountants in Iran and the required data was collected by distributing a researcher-made questionnaire among 338 people. After that; inferential statistical methods such as t-test and structural equation modeling using the PLS method were used to analyze the data.
The first result of this study; Identifying the dimensions and components affecting the implementation of the risk-based audit approach is in line with improving the quality of independent auditing, which was achieved by using theoretical studies, summarizing the opinions of accounting and auditing experts, analyzing the opinions of the statistical community, and receiving the opinions of experts in fields related to the research. The second result of this study showed that the components of the history of internal audit activities, auditor motivation, the effectiveness of internal control systems, the existence of risk-based audit laws and regulations, the internal control system, the ability of auditors, and audit fees had a positive and significant effect on the implementation of the risk-based audit approach. The final findings also indicated that implementing a risk-based audit approach has a positive and significant impact on the quality of independent audits.
  • Pourali, Mohammad Reza, Radan, Roya. (2012). Risk-based auditing; a new approach. Published in the First National Conference on Accounting and Management in 2012. National Article ID: NOORACCOUNTING01_208
  • Hamidi, Naser, Pouyanfar, Farzad, Mahmoudi, Farzad. (2019). Presenting a systematic risk-based audit method in the banking industry. Management and Accounting Studies Fall 2019, Volume 5 - Issue 3.
  • Salem Jaber, Hekmat. (2019). Designing a model of factors affecting the quality of independent audits of commercial companies operating between Iran and Iraq. Master's thesis in the country, Shahid Chamran University of Ahvaz, Faculty of Economics and Social Sciences.
  • Shahvardi, Masoud, Falah, Mirfiz, Kordloui, Hamidreza, Badiei, Hossein. (2019). Nasaei, obstacles and presenting a model for implementing a risk-based audit system in Iran. Quarterly Journal of Accounting and Management Auditing Knowledge, Volume 11, Issue 43 - Serial Issue 43.
  • Ghaith Zuhair, Hassan. (2019). The impact of independent auditor performance on audit quality components. Master's thesis in the country, Urmia University, Faculty of Economics and Management.
  • Karami, Gholamreza, Rahimian, Nizamuddin, Eskandari, Keyvan. (1400). Identifying obstacles to the full implementation of risk-based auditing in Iranian audit firms and providing necessary solutions to accelerate it. Danesh Auditing Journal, 1400, Volume 21, Number 82.
  • Mahmoudi, Farzad, Pouyanfar, Farzad. (1400). Risk-based auditing: with a multi-criteria decision-making approach. Decision Engineering Quarterly, Year 3, Number 10, Fall 1400.
  • Latin sources
  • Abo-Donia, A. E.-S. M., & Elgendy, K. M. M. J.. (2023). Using Risk–Based Audit Approach for Auditing Accounting Estimates and its impact on the Audit Quality: an Empirical Study. 10(1), 146-205.
  • Francis, J. R. J. T. B. A. R. (2023). Going big, going small: A perspective on strategies for researching audit quality. 55(2), 101167.
  • Kzykeyeva, A. J. Q.-A. t. S. (2022). Risk-Based Approach to Improving the Quality of Internal Audit. 23(189 (
  • Le, T. T., Nguyen, T. M. A., Ngo, T. H. C. J. E. R. o. M., & Economics, B. (2022). Risk-based approach and quality of independent audit using structure equation modeling–Evidence from Vietnam. 28(3), 100196.
  • Li, X. J. M. v. A. e. B. (2022). Behavioral challenges to professional skepticism in auditors’ data analytics journey. 96(1/2), 27-36.
  • SINAGA, R. I. H. J. R. L. J. (2023). ANALYSIS OF FACTORS IN IMPLEMENTING RISK-BASED PERFORMANCE AUDITS THAT AFFECT FIRM VALUE. 11(5s( .
  • Sujana, E., Dharmawan, N. A. S. J. A. A., Business, & Journal, F. (2023). Audit Quality Improvement and the Role of Risk: Audit as a Moderator. 17(4), 213-228.