The development of audit detection risk assessment system: Using the fuzzy theory and audit risk model

Expert Systems with Applications

Volumn 35, Issue 3, 2008, Pages 1053-1067

  Chang, She I ^a   Tsai, Chih Fong ^a   Shih, Dong Her ^b   Hwang, Chia Ling ^a  

^a NATIONAL CHUNG CHENG UNIVERSITY   (Taiwan)

^b NATIONAL YUNLIN UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

Author keywords

Audit risk model; Detection risk; Fuzzy theory; Grounded theory

Indexed keywords

ARCHITECTURAL DESIGN; COMPUTER NETWORKS; DECISION MAKING; FUZZY LOGIC; RISK MANAGEMENT; RISKS; SAFETY ENGINEERING; SET THEORY; TECHNOLOGICAL FORECASTING;

ASSESSMENT SYSTEM; AUDIT RISK; CASE STUDIES; DELPHI METHODS; ELSEVIER (CO); FUZZY THEORY; GROUNDED THEORY; IN ORDER; RISK FACTORS;

RISK ASSESSMENT;

EID: 44949192852     PISSN: 09574174     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eswa.2007.08.057     Document Type: Article

References (36)

1. American Institute of Certified Public Accountants (AICPA): SAS 47(1983) and AU 312 (1984), Audit Risk and Materiality in Conducting an Audit.
2. Akhter F., Hobbs D., and Maamar Z. A fuzzy logic-based system for assessing the level of business-to-consumer (B2C) trust in electronic commerce. Expert Systems with Applications 28 4 (2005) 623-628
3. Arens A.A., Elder R.J., and Beaslsy M.S. Auditing and assurance services: An integrated approach. 10th ed. (2005), Prentice Hall, Upper Saddle River, New Jersey
4. Beattie, V., Fearnley, S., & Brandt, R. (2002). Auditor independence and audit risk in the UK: A Reconceptualisation, Presented at The American accounting association professionalism and ethics symposium, August.
5. Beaulieu P.R. The effects of judgments of new clients' integrity upon risk judgments, audit evidence, and fees. Auditing 20 2 (2001) 85-99
6. Bedard J.C., and Graham L.E. The effects of decision aid orientation on risk factor identification and audit test planning. Auditing 21 2 (2002) 39-56
7. Behn B.K., Kaplan S.E., and Krumwiede K.R. Further evidence on the auditor's going-concern report: The influence of management plans. Auditing 20 1 (2001) 13-28
8. Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1996). Internal Control Issues in Derivatives Usage, AICPA.
9. Cushing B.E., Graham Jr. L.E., Palmrose Z.-V., Roussey R.S., and Solomon I. Risk orientation. In: Bell T.B., and Wright A.M. (Eds). Auditing practice, research, and education: A productive collaboration (1995), AICPA, New York, NY 11-54
10. Davutyan N., and Kavut L. An application of data envelopment analysis to the evaluation of audit risk: a reinterpretation. Abacus 41 3 (2005) 290-306
11. Dubois D., and Prade H. Fuzzy sets and systems (1980), Academic Press, New York
12. Friedlob G.T., and Schleifer L.L.F. Fuzzy logic: Application for audit risk and uncertainty. Managerial Auditing Journal 14 3 (1999) 12-13
13. Glaser, B. G. (1992). Basics of grounded theory analysis: Emergence vs forcing, Mill Valley.
14. Haskins E.H., and Dirsmith M.W. Control and inherent risk assessments in client engagements: An examination of their interdependencies. Journal of Accounting and Public Policy 14 (1993) 63-83
15. Helliar C., Lyon B., Monroe G.S., Ng J., and Woodliff D.R. UK auditors' perceptions of inherent risk. British Accounting Review 28 1 (1996) 45-72
16. Johnstone K.M. Client-acceptance decisions: Simultaneous effects of client business risk, audit risk, auditor business risk, and risk adaptation. Auditing 19 1 (2000) 1-25
17. Khurana I.K., and Raman K.K. Litigation risk and the financial reporting credibility of big 4 versus non-big 4 audits: Evidence from Anglo-American countries. The Accounting Review 79 2 (2004) 473-495
18. Krishnan J., and Krishnan J. Litigation risk and auditor resignations. The Accounting Review 72 4 (1997) 539-560
19. Lee D.H., and Park D. An efficient algorithm for fuzzy weighted average. Fuzzy Sets and Systems 87 (1997) 39-45
20. Linstone H.A., and Turoff M. The Delphi method: Techniques and applications (1975), Addison Wesley
21. Low K.Y. The effects of industry specialization on audit risk assessments and audit-planning decisions. The Accounting Review 79 1 (2004) 201-219
22. Lyon J.D., and Maher M.W. The importance of business risk in setting audit fees: Evidence from cases of client misconduct. Journal of Accounting Research 43 1 (2005) 133-151
23. Martinov N., and Roebuck P. The assessment and integration of materiality and inherent risk: an analysis of major firms' audit practices. International Journal of Auditing 2 (1998) 103-126
24. Messier Jr. W.F., and Austen L.A. Inherent risk and control risk assessments: Evidence on the effect of pervasive and specific risk factors. Auditing: A Journal of Practice and Theory 19 2 (2000) 119-131
25. Mock T.J., Wright A., and Srivastava R.P. Audit program planning using a belief function framework (1998), University of Kansas Audit Research Symposium
26. Mujumdar P.P., and Sasikumar K. A fuzzy risk approach for seasonal water quality management of a river system. Water Resources Research (2002)
27. Newnam D.P., Paterson E., and Smith R. The influence of potentially fraudulent reports on audit risk assessment and planning. The Accounting Review 76 1 (2001) 59-80
28. Ross T.J., Sorensen H.C., Savage S.J., and Carson J.M. DAPS: Expert system for structural damage assessment. Journal of Computing in Civil Engineering 4 4 (1990) 327-348
29. Shailer G., Wade M., Willett R., and Yap K.L. Inherent risk and indicative factors: senior auditors' perceptions. Managerial Auditing Journal 13 8 (1998) 455-464
30. Taiwan Audit Criteria Bulletin No. 24, Significance and Audit risk, announced in 1993.
31. Tanaka K., and Sugeno M. Stability analysis and design of fuzzy control systems. Fuzzy Sets and Systems (1992)
32. Taylor M.H. The effects of industry specialization on auditors' inherent risk assessments and confidence judgments. Contemporary Accounting Research 17 4 (2000) 693-712
33. Toshiro T. (1994). Fuzzy engineering and LIFE project, Fuzzy Systems. In IEEE World congress on computational intelligence, proceedings of the third IEEE conference.
34. Turner, J. L., Mock, T. J., Srivastava, & R. P. (2002a). A conceptual framework and case studies on audit planning and evaluation given the potential for fraud. In Proceedings of the 2002 Deloitte & Touche University of Kansas symposium on auditing problems.
35. Wustemann J. Evaluation and response to risk in international accounting and audit systems: Framework and German experiences. Journal of Corporation Law 29 2 (2004) 449-466
36. Zadeh L. Fuzzy sets. Information and Control 8 (1965) 338-353