Audit Risk Modelling

Abstract

Until recently, the formal model for the estimation of audit risk was relatively straightforward. There were two major approaches: the familiar multiplicative planned risk model in the USA and UK; and the Canadian Bayesian posterior risk model. Recent work has substantially changed the framework for estimating audit risk. Aims to evaluate these proposals and to develop a single framework for the measurement of planned and posterior risk.

Citation

Woodhead, A.D. (1992), "Audit Risk Modelling", Managerial Auditing Journal, Vol. 7 No. 5. https://doi.org/10.1108/02686909210017856