English abstract
The purpose of this research is to study and analyze the impact of audit risk assessment on the fairness of financial statements in shareholder's firms in the Sultanate of Oman. The study will evaluate how auditors’ attitudes regard the risk assessment in the process of conducting an audit procedure. Audit risk assessment has importance for whole firm stakeholders and board of directors, to make effective financial decisions, and to help organizations avoid financial crises, losses, and bankruptcy. Audit risk has three components: inherent risk, control risk, and detection risk. Risk management is implemented through some international risk management standards and instructions such as the ISO 31000 standard.
Approach/ methodology, this research study follows the deduction approach, as the research involves quantitative data collection, primarily, from a survey in the form of questionnaires. Then, the findings will be analyzed using SPSS to test the research hypotheses.
Result/ findings, there is a causal relationship between audit risk assessment (Inherent Risk, control risk, and detection risk) and fairness of Financial Statement, which increase the trust of stakeholders in financial statements in the Sultanate of Oman.
Practical implications, this study would be helpful for auditors to carry out their tasks more effectively and efficiently which would enhance the fairness of financial statements.
Originality/value, this research has filled the gap by audit risk assessment and the last studies, especially since there is a lack of studies in the Omani context. The advanced quantitative data analysis used in this research will allow future researchers to explain the contribution of this research to understand the importance of risk assessment to safeguard firm assets and avoid bankruptcy and shutdown.
Keywords: Audit Risk Assessment, Fairness of Financial Statement inherent risk, control risk, detection risk
