Abstract
This study aims to evaluate the impact of industrial specialization of the external auditors, analytical review, and continuous review process on the underlying audit risks. The external audit firms placed in Khartoum city of Sudan were taken as the population of the research, and from this, a sample of 40 external auditors was selected randomly. A questionnaire was floated to all selected samples and was returned 100% valid to be incorporated in the research. SPSS software was used to evaluate the measures by using simple linear regression analysis. Scale reliability was tested by using Cronbach alpha test and found its value as 0.806 for the overall scale. The findings indicated that all the independent variables, such as industrial specialization of the external auditors, analytical review, and continuous review, help to reduce the audit risk by 10%, 23%, and 13%, respectively. In view of these findings, it is recommended that external auditors must take part in training and development activities in order to abreast of these requirements. Likewise, the clients are also advised to emphasize the industrial specialization of the external auditor while focusing on analytical review as well as continuous review. (C) 2020 The Authors. Published by IASE.