... more prescriptive, auditors would have to use both approaches even when unsuitable. Auditors currently at their own discretion evaluate the best cost effective approach by taking into account factors such as strict deadlines. Standardising would restrict these decisions and furthermore, increase unnecessary work loads resulting in a waste of resources and opportunity costs. Auditors use the ISA audit risk model to assess the level of materiality within the company thus aiding them to decide the level of testing required (Easter, 2006). The higher the risks the more work required and the lower the materiality expected. These risks lead to auditors making wrong judgements thus making wrong conclusions. By using this model, auditors can prevent this risk. The model supports the notion audit work should be targeted and selective thus leading to more cost effective audits being carried out. However, if standardised, this model would be eradicated and auditors would have ...

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