Extent of external auditors compliance with audit risk model : evidence from Palestine

الملخص EN

The main goal of the study is to explore external auditors' compliance with Audit Risk Model (ARM) in Palestine and to explore preferred responses to assessed level of risks from external auditors' perspective.

To achieve research objectives, exploratory methodology is followed.

It is applied by descriptive analysis of literature from both primary and secondary sources.

In addition, a comprehensive survey of 75 external auditors are investigated by a questionnaire.

The study finds that; (1) External auditors highly comply with Audit Risk Model (ARM); (2) External auditors prefer to respond to assessed risks by increasing sample size, perform additional audit tests and allocate more audit evidences; (3) Audit risk valuation is documented by descriptive technique and as percentages.

In addition to that, results of risk assessment are integrated using professional judgment and computer programs.

The study recommends external auditors to give interest to training and professional learning specially in the field of risk-based auditing and to increase the effectiveness of professional bodies role in controlling the profession and to review law number 9/2004 which controls audit profession to develop conditions of giving license for practitioners.