A normative model of decision making in auditing

Abstract

An audit is a collection of judgments made about various accounting subsystems. Ultimately these judgments must be combined in order to issue a final opinion. As businesses become more complex, the number and type of subsystems increase, and the job of the auditor becomes more complex. Coupled with an increase in auditor liability, systems which provide quantitative support for the audit process are needed. This research attempts to formalize the audit process by developing a normative model of the audit decision process. Such a model would provide the theoretical basis for building an expert support system for auditors.