Professional Risk Management in XYZ Certified Public Accountant Firm

DOI

10.2991/aebmr.k.220204.004How to use a DOI?

Keywords

Hexagon Fraud; Overall Manipulation Index; Fraudulent Financial Statement

Abstract

As a professional service provider, applicable ethics, standards, and regulations must be the basis for making Certified Public Accounting (CPA) Firm’s procedures during the engagement. The number of financial report cases involving Public Accountants shows that there is negligence in implementing risk management at the CPA Firm. This study aimed to evaluate the application of professional risk management at CPA Firm by using Quality Control Standards 1 as the basis for assessing compliance with applicable ethics, standards, and regulations. This research was conducted using the case study method. The object of this research is XYZ CPA Firm, which is listed as the non-big four CPA Firm affiliated with the International CPA Firm. The research instruments used in this study were observation and interviews. The study results can be used as a basis for improving the implementation of risk management in XYZ CPA Firm. The study results indicate that overall, XYZ CPA Firm’s risk management design has complied with applicable ethics, standards, and regulations. XYZ CPA Firm has also designed control activities for all identified risks. However, the risk management design has not been appropriately implemented. This is indicated by the internal findings related to engagement documentation. Poor implementation was caused by time constraints and a lack of coordination of the audit team. XYZ CPA Firm has also designed control activities for all identified risks. However, the risk management design has not been appropriately implemented. This is indicated by the internal findings related to engagement documentation. Poor implementation was caused by time constraints and a lack of coordination of the audit team. XYZ CPA Firm has also designed control activities for all identified risks. However, the risk management design has not been appropriately implemented. This is indicated by the internal findings related to engagement documentation. Poor implementation was caused by time constraints and a lack of coordination of the audit team.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Farrah Angelica Basalama
AU  - Agung Nugroho Soedibyo
PY  - 2022
DA  - 2022/02/10
TI  - Professional Risk Management in XYZ Certified Public Accountant Firm
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
PB  - Atlantis Press
SP  - 30
EP  - 34
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220204.004
DO  - 10.2991/aebmr.k.220204.004
ID  - Basalama2022
ER  -