Dynamic Analysis of the Performance of Bayesian Audit Strategies With Reliability Modeling of Internal Control

摘要

A simulation study is reported in this paper, which analyzes the performance of bayesian audit strategies in a novel fashion dynamically, considering varying sample sizes depending on the extent of an auditor's prior information.The prior information arises from a set of tests of internal controls which are evaluated making use of reliability theory.The major finding is that robust bayesian audit strategies that have recently been developed in auditing research are more sensitive to non-sampling errors than existing strategies of audit practice.