THE FUTURE AUDIT OF INTERNET CASINOS (RSA): ANALYSIS CRUCIAL TO MITIGATING SIGNIFICANT RISK TO THE AUDITOR

• Main Author: Von Benecke, G
• Other Authors: Central University of Technology Free State Bloemfontein
• Format: Others
• Language: en_US
• Published: Interim : Interdisciplinary Journal, Vol 13, Issue 2: Central University of Technology Free State Bloemfontein 2015
• Subjects: Audit risk; internet casinos in South Africa; auditor's business risk
• Online Access: http://hdl.handle.net/11462/291

Published Article === This paper synthesises, as its primary aim, through an integrative literature review, a new perspective on two major implications of the proposed legalisation of internet casinos in South Africa, which is: the effect on the auditor's business risk as well as the effect on audit risk. As its secondary aim the paper argues that legalisation of internet casinos in South Africa is imminent and that relative to other business, heavy reliance will be placed on the external auditor to ensure the internet casinos' compliance with various laws. The relevance and application of an integrative literature review is motivated. International perspectives are applied to the South African context. The paper demonstrates the relationship between the concepts of the auditor's business risk and audit risk by establishing that the auditor's business risk flows from possible accountability that may stem from significant audit risk that is not addressed during the audit engagement. The paper argues that the operational context of an internet casino in South Africa will be relatively unique and that three interrelating factors will create significant audit risk. The three significant factors are shown to be going concern, regulatory and information technology impacts. Failure by the auditor to recognise and respond appropriately to this audit risk may lead to serious consequences for the practitioner which may include regulatory intervention, reputational based losses or litigation. The impact of the International Standards on Auditing in this context is explored throughout and it is concluded that adherence to these standards will sufficiently mitigate significant audit risk as well as the auditor's business risk.