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The Risk Approach: An Alternative To The Classic Audit Approach

Author

Listed:
  • Anca Daniela SENCHEA

    (Valahia University of Targoviste, Romania)

  • Anda NECULA

    (Valahia University of Targoviste, Romania)

  • Alice Mariana PREDA (SIMION)

    (Valahia University of Targoviste, Romania)

  • Andreea Cristina SAVU

    (Valahia University of Targoviste, Romania)

Abstract

This study will focus on addressing risk. The purpose of this article is to highlight the importance of the risk approach in the pursuit of effectiveness and efficiency in audit work. To demonstrate this, we will first show the limitations of the classical audit approach, then illustrate the importance of the risk-based approach, and finally present the approach to auditing according to this approach. A risk-based approach also improves an organization's decision-making process, regardless of its industry focus. Therefore, a risk-based approach consists of identifying, assessing, and understanding risks, as well as the subsequent application of measures proportionate to these risks to ensure their effective mitigation.

Suggested Citation

  • Anca Daniela SENCHEA & Anda NECULA & Alice Mariana PREDA (SIMION) & Andreea Cristina SAVU, 2022. "The Risk Approach: An Alternative To The Classic Audit Approach," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 7(4), pages 213-220.
    • Handle: RePEc:brc:brccej:v:7:y:2022:i:4:p:213-220
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    More about this item

    Keywords

    auditors; risks; audit; company;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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