Location of Audit Task Impact on Audit Risk and Quality: Insight From Bank Loan Officers

Authors

  • Lydia Didia Jackson State University
  • Adrian L. Mayse Howard University
  • Kwadwo H. Ofori-Mensah Fort Hays State University

DOI:

https://doi.org/10.33423/jabe.v24i2.5148

Keywords:

business, economics, audit risk, audit quality, audit task, outsourcing, offshoring

Abstract

Given globalization, increased competition, and technological advances, audit firms send audit procedures to other countries. This paper examines bank loan officers' perceptions of audit risk and quality when audit tasks are performed in locations other than that of the principal auditor. Our findings indicate that bank loan officers perceive an increase in audit risk as audit procedures move further away from the lead auditor. However, they do not believe that these procedures significantly affect audit quality. Managers and those charged with governance can benefit from these procedures without fearing that lenders will perceive their audited financial statements diminished in quality.

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Published

2022-04-27

How to Cite

Didia, L., Mayse, A. L., & Ofori-Mensah, K. H. (2022). Location of Audit Task Impact on Audit Risk and Quality: Insight From Bank Loan Officers. Journal of Applied Business and Economics, 24(2). https://doi.org/10.33423/jabe.v24i2.5148

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Section

Articles