Methods for Risk Identification and Assessment in Financial Auditing

Identification and assessment of audit risks, which may be encountered by a company, is a very important step in the audit procedure. The risk is actually a threat to society, something that could happen, the threat resulting from a specified event, so something has to happen for the risk to become “alive”. The key to success is knowledge, but the key to success in the global context is the ability to adapt your knowledge to the trend. If, until now, methods for risk identification and assessment in financial audit used by auditors are classic, they need to upgrade and level up to the next step. The present paper presents three methods for risk assessment in financial auditing: ARM, Bayes’ theorem and belief function, managing to conclude that for adapting to the technology that it is in constantly change, computer-assisted audit techniques are becoming slowly –slowly a necessary evolution.