Author(s)

Esamaddin Khorwatt

Faculty of Accountancy, University of Al-Jabal Al-Gharbi, Gherian, Libya.

In order to perform risk assessment, current auditing standards emphasize the importance of auditors gaining a broader understanding of an organization, as well as its environment. From this perspective, Schultz Jr. (2010) stated that auditing standards direct auditors to consider business risk and other risk factors when they evaluated the overall risk of material misstatement during the planning stage of an audit [1]. This paper reviews the developments in relevant professional and academic literature in terms of client’s business risk assessment. The model of the current study incorporates some 28 factors viewed as potential influence on client’s business risk and control risk assessment. Attention is also directed to the degree of risk associated with the factors. Predictions of Libyan auditors’ behaviour are drawn from the model and the reviewed literature.

Business Risk, Client’s Business Risk Factors and Control Risk Factors

Khorwatt, E. (2015) Assessment of Business Risk and Control Risk in the Libyan Context. Open Journal of Accounting, 4, 1-9. doi: 10.4236/ojacct.2015.41001.