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The study aims to empirically analyze auditors' assessments of inherent risk and control risk in field settings.

Auditors' Assessments of Inherent and Control Risk in Field Setting.

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The study aims to empirically analyze auditors' assessments of inherent risk and control risk in field settings.
Analyzed archival data from 215 audit engagements at KPMG Peat Marwick
Examined approximately 5,000 risk assessments for trade accounts and inventory
Compared statistical associations between inherent risk and control risk assessments
Evaluated discrepancies in auditors' risk assessments across assertions.
Found an insignificant association between inherent risk and control risk assessments
Auditors often assess control risk at maximum values for efficiency
Detected significant discrepancies in the rate of misstatements across assertions
Association between inherent risk and detected misstatements was positive but low, with stronger correlation for 'most important' assertions.

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Empirical study examines auditors' risk assessments in field settings, suggesting implications for audit practices.

William S. Waller (1993) studied this question.

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