Abstract
Article history: Received February 3, 2011 Received in Revised form April, 12, 2011 Accepted 12 April 2011 Available online 15 April 2011 Fuzzy logic has created suitable mathematics for making decisions in uncertain environments including professional judgments. One of the situations is to assess auditee risks. During recent years, risk based audit (RBA) has been regarded as one of the main tools to fight against fraud. The main issue in RBA is to determine the overall audit risk an auditor accepts, which impacts the efficiency of an audit. The primary objective of this research is to redesign the audit risk model (ARM) proposed by auditing standards. The proposed model of this paper uses fuzzy inference systems (FIS) based on the judgments of audit experts. The implementation of proposed fuzzy technique uses triangular fuzzy numbers to express the inputs and Mamdani method along with center of gravity are incorporated for defuzzification. The proposed model uses three FISs for audit, inherent and control risks, and there are five levels of linguistic variables for outputs. FISs include 25, 25 and 81 rules of if-then respectively and officials of Iranian audit experts confirm all the rules. © 2011 Growing Science Ltd. All rights reserved.
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