The Impact of Earnings Management Risks, Corporate Governance Risks on Auditors’ Decisions. Perceptions of Egyptian Auditors

Abstract

577). Professional standards and accounting studies indicated that the risks of the audit client consider of the most important factors that affect the auditors’ decisions. D’Aquila et al. 2010 stated that to manage the overall risk of an auditor’s association with a particular client, is a paramount objective for all auditors, particularly in the Big 4, and Krishnan, et al, 2013 indicated that Successful management of client risk is important to preserve the auditor’s reputation and mitigate the risk of litigation. Johnstone & Bedard, (2005) argued that there are several ways to manage audit risk, and one of these is making decisions on client acceptance, audit pricing and planning for the audit process effort needed to reduce audit risk to an