Information Risk and Insurance Theory in Financial Audit
MetadataShow full item record
Financial audit role can be justified in terms of three theories, namely motivational theory, agency theory and the theory of insurance. Theory envisages ensuring that the financial audit information reduces risk, reduces the risk that the information provided to users by public entities may not be correct. Financial and accounting information users should consider both the risk of failure and risk information. Implications could be the next chain: risk reduction information leads to a reduction in the risk premium demanded by investors, leading to a reduction in costs allocated to capital. In this article we try to demonstrate financial audit role in risk reduction information, but with the justification that it is a reasonable assurance.
- 2013 fascicula1 nr1