Analysis of the Factors Influencing Audit Project Exposure to Risks

Auditing environment is rapidly changing due to economy, authority, regulations, and society. Risk management is one of the key aspects of project management in audit, since the absence of the risk management system reduces the probability of achieving the project objectives. Analyzing audit projects, it is noteworthy to mention a number of features, such as work with confidential information, combined with the information technologies, competitors` pressure, regulator`s influence, constant feedback from the client-customer, which cause a high level of project risk. In addition, the consolidation and integration of the business directly affects the complexity of the audit projects and contributes to significant risks, such as those related to resource planning, project timelines, quality and other areas of project management. In this regard, a number of projects on the audit of the financial statements do not reach their targets: the deviation in time and cost, margins and customer satisfaction. Thus, the general purpose of this study is to identify the main factors affecting audit engagement exposure to risks and, as a result, reducing the probability of achieving the project objectives.