Volume 21, Number 1, June 2026
| Towards a More Effective Audit: A Theoretical Analysis of the Risk-Based Approach as a Strategic Alternative to the Traditional Approach |
Abstract
The aim of this paper is to demonstrate the importance of the risk-based approach as a better alternative to the traditional approach in the pursuit of effectiveness and efficiency in auditing work, both for the client and for the firm. Our approach is based on a structured documentary analysis, drawing on the main theoretical and critical works relating to audit approaches. This comparative analysis allows us to identify convergences, divergences, and underlying assumptions in order to develop a conceptual synthesis. Following this analysis, we suggested that audit professionals use a risk-based audit approach. This approach focuses on identifying and assessing significant risks that could have a material impact on the company's financial statements. It is more oriented towards concentrating audit efforts where risks are higher, allowing auditors to target audit procedures more effectively, unlike the traditional approach, which tends to be more comprehensive but less risk-focused. In addition, the risk-based approach is just as beneficial for the firm as it is for clients in terms of time, cost, and quality of services.
Keywords: Audit, Risk-Based Approach, Traditional Approach, Agency Theory, Decision Theory
JEL Classification: M41, M42