Quality Control Elements and Auditor Fraud Risk Assessment: An Experimental Study

Abstract

This study investigates and analyzes if auditor performance toward fraud risk assessment can be an indicator for the effectiveness of some of the ISA 220 quality control elements, mainly engagement team experience and direction and supervision. An experiment was conducted with a number of auditors working in audit firms with international affiliations in Egypt. Results suggest that proper auditor experience rather than direction and supervision inside audit firms could have a significant impact on auditor fraud risk assessment. The findings have implications for regulators and the accounting profession concerned with monitoring and promoting audit quality, especially in the Egyptian environment.