What question did this study set out to answer?

This research aims to determine if auditors change their audit scope based on client characteristics that influence engagement risk.

June 15, 2026

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.

Abstract

Abstract Determines whether or not auditors adjust their audit scope in the presence of conditions believed to contribute to the overall engagement risk. Impact of weak financial conditions on the likelihood of mis-statements; Implications of the behavior for expansion of risk during evidential planning from audit risk to overall engagement risk.

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