（2003）Risk assessment in an extended enterprise environment：redefining the audit model.pdfVIP

International Journal of Accounting Information Systems 4 (2003) 57–73 Risk assessment in an extended enterprise environment: redefining the audit model Steve G. Suttona,b,*, Clark Hamptona,1 aSchool of Business (U-41A), University of Connecticut, 2100 Hillside Drive, Storrs, CT 06269, USA bDepartment of Accounting and Business Information Systems, The University of Melbourne, Vic 3010, Australia Received 30 April 2002; received in revised form 1 December 2002; accepted 5 December 2002 Abstract The complexity of contemporary business organizations has caused the audit profession to radically alter their audit processes over the past decade. In short, a broader view of an audit as assessing business risk has led the profession to alter its procedures in accordance with this vision. One of the key issues that has not been addressed, however, is the impact of e-business partnerships, outsourcing and co-sourcing relationships, and co-dependence with business partners on the extending of the business risk faced by a client. In an extended enterprise environment where a client organization now inherits significantly greater risk from business partners, auditors need to better understand the implications of these relationships and devise the means by which to reasonably assess business risk across the extended enterprise. This paper focuses on the e-business component of the extended enterprise and provides a synopsis of key issues researchers need to examine in providing leadership to the profession in formulating such a redefined audit model. D 2003 Elsevier Science Inc. All rights reserved. Keywords: e-Business; e-Commerce; Assurance services; Risk-based auditing; Outsourcing; Business risk * Corresponding autho