This study responds to prior literature highlighting the need for academic research to study
the linkage of risks to audit procedures purported in the Audit Risk Model. We use audit
workpaper data from a Big 4 firm to examine two significant relationships implicit in
authoritative audit guidance:(1) the application of the audit risk model in practice, and the
relationship between preliminary risk assessments and audit procedures, and (2) the
potential loss of risk information upon risk aggregation suggested in the Audit Risk Model …