A Sampling Model for Audit Tests of Composite Accounts

Felix, William L.; Grimlund, Richard A.

doi:10.2307/2490554

Cited by 27 publications

(7 citation statements)

References 9 publications

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“…Subjective probability theory is advocated as a sound approach for quantifying the auditor's judgement about the degree of confidence in each elemental proposition. The auditor's prior judgement of the variety of values that a 12 Among the authors which have addressed features 2, 3 and 4 are Heimann and Chesley (1977) and Cushing, Searfoss and Randall (1979), who addressed explicitly the aggregation issue (feature 2); Scott (1975) and Ng (1978) who address the relationship between the auditor's role in society and the objectives of an auditing model; and Felix and Grimlund (1977) who deal with the auditor's aggregation of subjective and objective information. particular proposition can take is treated as a prior subjective probability density function.…”

Section: Normative Decision Models Of Auditing: the 'Audit Modelling mentioning

confidence: 99%

Economic aspects of audit regulation and auditor liability

Willekens

1996

European Accounting Review

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Section: Normative Decision Models Of Auditing: the 'Audit Modelling mentioning

confidence: 99%

Economic aspects of audit regulation and auditor liability

Willekens

1996

European Accounting Review

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“…In particular, what does "sufficiently accurate" mean? A complete answer would require a detailed consideration of many difficult issues (e.g., the auditor's utility function, processes for aggregating beliefs over accounts), which are not as yet resolved in the literature (see Scott, (1973Scott, ( , 1975Scott, ( , 1979; Felix and Grimlund (1977);Felix (1980)), and such resolution is beyond the scope of this paper. A tentative answer follows.…”

Section: Model and Hypothesesmentioning

confidence: 99%

Auditors' usage of unaudited book values when making presampling audit value estimates_*

Shields

Solomon

Waller

1988

Contemporary Accting Res

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Abstract. An important issue in audit judgment research concems auditors' use of unaudited book values when making judgments in the presampling phase of the audit. This paper presents a rudimentary model of the auditor's belief revision process with respect to unaudited book values from an audit value estimation perspective. An experiment testing some implications of the model is also presented. The model proposes that the auditor should judge the validity of unaudited book values in the circumstances and use them accordingly when making presampling audit value estimates. The experimental results indicated that the subjects (auditors) used available unaudited book values and that the extent of usage varied over accounts. However, the results also indicated some inaccurate presampling validity judgments which led to overweighting of unaudited book values.ResumS. Une question importante qui pr^occupe les chercheurs dans le domaine de la formulation de jugements en verification a trait it ['utilisation par les verificateurs de valeurs comptables non \6riMes dans la formulation de jugements au cours de la phase de la verification pr6c6dant l'echantillonnage. Les auteurs pr^sentent un modele rudimentaire du processus de revision des convictions du verificateur en ce qui a trait aux valeurs comptables non v6rifi6es dans une perspective d'estimation de la valeur de verification. Ils font egalement etat d'une experience destinee a verifier certaines des consequences du modele. Selon le modae, Ie verificateur devrait juger de la validite des valeurs comptables non vedfiees dans Ies circonstances et les utiliser en consequence dans la formation d'estimations de la valeur de verification avant echantillonnage. Les resultats de I'experience revfelent que les sujets (verificateurs) utilisent les valeurs comptables non vedfiees disponibles et que retendue de cette utilisation vade avec les comptes. Toutefois, les resultats revMent aussi l'inexactitude de certains jugements relatifs a la validite antedeure h rechantillonnage, h la suite desquels une importance trop grande a ete accordee aux valeurs comptables non vedfiees.

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“…A model of the error-generating process Our model for the error-generating process is that discussed in Menzefricke and Smieliauskas (1984), following Felix and Grimlund (1977). Thus, in population j we take the proportion of nonzero units to be <j)/ and the nonzero taintings as coming from a normal distribution with mean | X; and variance qf.…”

Section: Two Minimization Problemsmentioning

confidence: 99%

On sample size allocation in auditing*

Menzefricke

Smieliauskas

1988

Contemporary Accting Res

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Scott (1973) suggested a model for satnple size allocation in auditing which uses as a criterion the minimization of costs of naisestimation and sampling costs. We extend his model hy incorporating the hinotnial-norma! model for errors of Menzefricke and Smieliauskas (1984).Resume. Scott (1973) a propose un module de repartition des tailles d'echantillon, en verification, dont le critere est la minimisation des couts attrihuables aux estimations erronSes et des couts d'echantillonnage. Les auteurs elargissent ce module en y incorporant le modele binomial-normal pour les erreurs de Menzefricke et Smieliauskas (1984).

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A Sampling Model for Audit Tests of Composite Accounts

Cited by 27 publications

References 9 publications

Economic aspects of audit regulation and auditor liability

Economic aspects of audit regulation and auditor liability

Auditors' usage of unaudited book values when making presampling audit value estimates_*

On sample size allocation in auditing*

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A Sampling Model for Audit Tests of Composite Accounts

Cited by 27 publications

References 9 publications

Economic aspects of audit regulation and auditor liability

Economic aspects of audit regulation and auditor liability

Auditors' usage of unaudited book values when making presampling audit value estimates*

On sample size allocation in auditing*

Contact Info

Product

Resources

About

Auditors' usage of unaudited book values when making presampling audit value estimates_*