Title: Engagement risk management instrument for the Zimbabwean audit firms

Authors: Varaidzo Denhere; Tankiso Moloi

Addresses: College of Business and Economics, School of Accounting, University of Johannesburg, Johannesburg, Auckland Park, South Africa ' College of Business and Economics, School of Accounting, University of Johannesburg, Johannesburg, Auckland Park, South Africa

Abstract: This study is aimed at developing an ERMI to be considered for utilisation by Zimbabwean audit firms. The proposed ERMI will guide audit partners and chief risk officers in assessing engagement risk for potential clients before accepting or rejecting them for an audit engagement. A Delphi process was employed to a panel of engagement risk experts, namely audit partners and chief risk officers. This study has identified engagement risk factors that should be assessed before client acceptance in the Zimbabwean context. It has further provided the ERMI which could be considered and adopted by Zimbabwean firms when they make a decision whether to accept or reject a potential client. It is envisaged that this instrument, will be pivotal in the reduction of reputational risk associated with litigation that follows when the auditee fails. Other countries could adopt the approach utilised to get to the ERMI for country specific ERMIs.

Keywords: engagement risk instrument; engagement risk factors; client acceptance; business continuity; risk management.

DOI: 10.1504/IJBCRM.2022.121646

International Journal of Business Continuity and Risk Management, 2022 Vol.12 No.1, pp.22 - 41

Received: 11 Apr 2020
Accepted: 05 Jul 2020
Published online: 23 Mar 2022 *

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