Business risks and auditor decisions: evidence from Tunisia

The aim of this exploratory research is to investigate the nature of planned audit procedures underlying each auditee business risk factor in the Tunisian context. An experimental study has been conducted based on an analysis of 47 Tunisian auditors' responses. The current study uses a questionnaire survey. The questionnaire contains a description of fictitious case of Tunisian company which operates in mechanicals and basic metals industry specialised on machinery and equipment manufactory. Survey participants are conducted, in the first time, to examine the case of company, to identify potential business risk factors that can affect the company, and to plan the most appropriate audit procedures in response to each business risk factor, in the second time. The results show that in Tunisia, auditors tend to plan analytical procedures in response to business risks factors related to the business and operations of the company, test of control in response to accounting indicators as business risks factors, and test of details in response to business risks factors associated to external and regulatory environments.