How does the 'stand-back' requirement improve audit risk assessment? The use of root cause analysis

  • Zhu, Skye (Primary Chief Investigator (PCI))
  • Phang, Soon-Yeow (Chief Investigator (CI))

Project: Research

Project Details

Project Description

The 'stand-back' requirement is a newly added provision found in global audit standards such as Australian auditing standard ASA 220 (Revised), ISA (UK) 240 and international auditing standard ISA 315 (Revised) (FRC 2022; IAASB 2019; AUASB 2021a; AUASB 2021b). The standards require an auditor to reconsider and reevaluate whether all significant transactions, balances and disclosures have been identified once the risk assessment has been completed (AICPA 2020; KPMG 2020). We experimentally investigate whether the use of the 'stand-back' requirement and the types of learning examples in root cause analysis can jointly influence auditors' fraud risk assessment.
Effective start/end date1/08/2331/07/24