Analysis of the Link between Auditing and Risk Level in the Internal Audit

Author:Univ. P rof. Partenie DUMBRAVĂ, Ph. D.; Marian SFETCU, Ph. D. Student

JEL:M 42

DOI:

Keywords:statistical research, performance, internal public audit, risk level, areas audited

Abstract:
The current context of economic, social and technical development of contemporary society determines the emergence of new risks, leading public audit to adapt to these challenges by improving the methods and techniques of risk analysis and by increasing the performance of the internal public audit.\r\nAnalysis of the link between auditing and risk level is meant to demonstrate the usefulness of applying statistical research methods and techniques in the practice of internal public audit by analyzing the existence of relationship between variables and intensity of the relationship established, the contribution of this methods to ensure audit performance.\r\nThis approach analyzes the possibility of using χ2 function in the procedure of risk analysis in planning the audit to determine whether the link between auditing and risk level, respectively the distance between the distribution of risk auditing and absolute frequency. The analysis continues with determination of coefficient C (Pearson`s coefficient) to establish the intensity of the link between auditing and risk level based on χ2 probability variable.\r\n

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