The Effects of Client Characteristics on Audit Scope.

Key Points

• This research aims to determine if auditors change their audit scope based on client characteristics that influence engagement risk.
• Assessed relationship between client financial conditions and auditors' adjustments to audit scope.
• Analyzed potential mis-statements and overall engagement risk during evidential planning.
• Strong correlation identified between weak financial conditions and increased likelihood of mis-statements.
• Auditors modified audit scope based on conditions contributing to engagement risk levels.