The use of risk-based audit approach in stages of a financial statement audit

A risk-based audit approach helps auditors identify potential material misstatement and establish appropriate audit procedures to reduce the risk of material misstatement to ensure the effectiveness and efficiency of an audit. However, by analyzing primary and secondary data collected from relevant studies, and interviewing auditors at 25 independent auditing firms in Hanoi, this study finds out that the risk-based audit approach is not very useful. This study makes some recommendations about the use of risk-based audit approach in stages of an audit.