The impact of earnings management risks : corporate governance risks on auditors’ decisions. perceptions of Egyptian auditors

Abstract EN

This paper aims to investigate the auditors’ assessment of the impact of earnings management risk and corporate governance risk on their decisions concerning acceptance client, planning and pricing.

A questionnaire was presented to 150 auditors to find out their perceptions toward the impact of both types of risks about their de- cisions.

The results showed that both types of risk affect auditors’ decisions concerning accept a new client, audit planning and audit fees.

The earnings management risk factors appear to be more important for Egyptian auditors and of these factors, The Egyptian auditors gives big attention to whether there are indications of unusually aggres- sive or creative accounting practices or no.

The results of the paper could provide auditors with practical insights that will prove useful in the course of their work.