Krisksm: A Computerized Decision Aid for Client Acceptance and Continuance Risk Assessments

Posted: 2 Apr 2002

See all articles by Timothy B. Bell

Timothy B. Bell

KPMG International, LLP - Assurance & Advisory Services Center

Jean C. Bedard

Bentley University - Department of Accountancy

Karla M. Zehms

University of Wisconsin - Madison - Department of Accounting and Information Systems

Edward F. Smith

KPMG LLP Assurance & Advisory Services

Abstract

This paper describes the development and implementation of KRiskSM, an innovative technology-enabled auditor decision aid for making client acceptance and continuance risk assessments. KRiskSM, developed and designed by KPMG LLP, is part of the firm's audit quality control and risk management processes. In this paper, we discuss the environmental and technological forces that affect auditor business risk management. Important aspects of the development, functionality, and implementation of KRiskSM are also presented. We discuss possible impediments to realizing the full potential of decision aids that have been reported in prior auditing research, and describe how KRiskSM and related audit quality control procedures implemented at KPMG were designed to overcome such impediments. Also, we present some ideas for scholarly research dealing with auditor business risk management issues, and issues related to the design and use of decision aids in general.

Keywords: Auditor business risk, Client acceptance, Client continuance, Risk management

JEL Classification: M49

Suggested Citation

Bell, Timothy B. and Bedard, Jean C. and Zehms, Karla M. and Smith, Edward F., Krisksm: A Computerized Decision Aid for Client Acceptance and Continuance Risk Assessments. Auditing: A Journal of Practice & Theory, September 2002. Available at SSRN: https://ssrn.com/abstract=299329

Timothy B. Bell

KPMG International, LLP - Assurance & Advisory Services Center ( email )

300 Tice Bouldevard
Woodcliff Lake, NJ 87675
201-505-2006 (Phone)

Jean C. Bedard

Bentley University - Department of Accountancy ( email )

175 Forest Street
Waltham, MA 02452
United States
781-891-2410 (Phone)
781-891-2896 (Fax)

Karla M. Zehms (Contact Author)

University of Wisconsin - Madison - Department of Accounting and Information Systems ( email )

School of Business
975 University Avenue
Madison, WI 53706
United States
608-234-1052 (Phone)
608-265-5031 (Fax)

Edward F. Smith

KPMG LLP Assurance & Advisory Services

Risk Managaement 280 Park Avenue
New York, NY 10154-0102
United States

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