Examination of the Effect of Risk Model Components on Perceived Audit Risk.

Key Points

• The study aims to determine how various components of a risk model influence perceived audit risk.
• Decomposed overall audit risk into distinct component risks
• Analyzed the levels of audit risk under identical overall audit conditions
• Assessed the significance of component risks for auditors in firms of varying sizes
• Identified differences in perceived audit risk based on the component risks
• Showed that auditors in smaller firms placed different importance on certain risks compared to larger firms
• Provided insights into how risk models can be tailored for varying firm sizes