The audit risk and its impact on the opinion of the auditor and the credibility of the audit results and ways of reducing them (Applied study in Crescent Industrial Joint Stock Company)

Abstract

That most of the economic units activities contain a variety of risks, including with regard to the nature of its activities or internal abide by its laws, and the aim of the audit is to examine and test the items contained in the financial statements show the auditor's professional technical neutral opinion about the fairness of the financial statements and representation of the financial center, The auditor's opinion occupies a great importance by all parties benefiting from , in making their decisions so access to this view which is not easy because there are several obstacles facing the work of the auditor and these obstacles are the difficulty of convergence of audit risk in the audit process, leading to the auditor to face an opinion may be misleading , the beneficiaries may harmed , due to the weakness , the lack of interest in building a methodology that is considered in accordance with the rules and standards which may determine how the auditor deals with the risks of auditing of the financial statements. The importance of the research is highlighted by identifying the significant impact that the audit risk poses on the adequacy and effectiveness of the auditor's performance, which seeks to perform a better performance by expressing a neutral professional opinion on the fairness of the financial statements, which reflects positively on the increase the trust of users from their report, The objective of the research is to identify the various types of audit risks and the factors affecting them, to study, assess and analyze those risks to the auditor regarding the validity and fairness of the financial statements, use the methods and procedures by which these risks can be reduced according to the rules and standards that determine how the auditor With the risk of auditing the financial statements, for the purpose of achieving the objectives of research and testing hypotheses was chosen Al-Hilal Industrial Company, a joint stock company sample research, in the light of the theoretical and practical aspects of it was reached a set of conclusions was the most prominent . 1 -The use of the auditor for analytical procedures contributes to increase the efficiency and effectiveness of the audit because it helps the controller in the identification of errors and distortions in the items of financial statements, which contributes to reducing the risk of discovery.2 - the audit risk assessment is based on the auditor personal judgment , a precise and accurate assessment of the audit risk and its components can not be made .it relies on the ability and profession competence of the self –auditor to develop and analyze the risks surrounding the economic unit environment and its internal control system and the risk analysis of the professional currency. The study came out with a number of recommendations, notably:1.The auditor should consider the analytical procedures at all stages of the audit because they are important for disclosing unusual cases in the financial statements. In addition, the auditor contributes to increasing the company's understanding and the variables that occur during previous years, in addition to reducing the risk of discovery.2.It is the responsibility of the auditing of account to follow effective and professional audit procedures necessary to obtain evidence and evidence in order to reduce the risk of discovery to the level allowed and to express a professional opinion neutral on the veracity and fairness of financial statement .