This article proposes a dual system cognitive reasoning model to enhance audit judgment and decision making. The model is built on the fact that the total cognitive capacity of an individual comprises two systems of r...This article proposes a dual system cognitive reasoning model to enhance audit judgment and decision making. The model is built on the fact that the total cognitive capacity of an individual comprises two systems of reasoning--System 1 that is unconscious, associative, implicit, more emotional and less controlled, and so forth; and System 2 that is conscious, explicit, deliberate and rule-governed, and so forth. The benefits of the proposed model that integrates these two complementary and compensatory systems are first illustrated with an example in audit planning, and second explained how the model could overcome the deficiencies of heuristics specifically in an audit context.展开更多
The main goal of this research is to enhance the auditor＇s judgment ability in going concern opinion by applying bankruptcy prediction models as an analytical procedure. Data for this research have been collected thr...The main goal of this research is to enhance the auditor＇s judgment ability in going concern opinion by applying bankruptcy prediction models as an analytical procedure. Data for this research have been collected through questionnaires. The statistical population consists of auditors who are members of Iranian Association of Certified Public Accountants （IACPA）. The research results reflect that： （1） Auditors do not use statistical techniques for assessing going concern as an analytical procedure; （2） Auditors do not use these techniques as a tool to decrease the bias of judgments in assessing the going concern assumption; （3） Auditors do not use statistical techniques to assess audit risk in the planning stage; （4） Auditors do not use statistical techniques to assess audit risk in the final stage. Furthermore this research shows that auditors believe that the ＂standard concerning usage of analytical procedures needs more clarification＂ and ＂statistical bankruptcy predication models can help auditors in the planning stage＂. The other goal of this research is to show different auditor＇s judgments in assessing the going concern opinion with and without applying the bankruptcy prediction models as an analytical procedure. The result shows that the judgment of auditors toward the going concern assumption has improved by using statistical bankruptcy predication models.展开更多
文摘This article proposes a dual system cognitive reasoning model to enhance audit judgment and decision making. The model is built on the fact that the total cognitive capacity of an individual comprises two systems of reasoning--System 1 that is unconscious, associative, implicit, more emotional and less controlled, and so forth; and System 2 that is conscious, explicit, deliberate and rule-governed, and so forth. The benefits of the proposed model that integrates these two complementary and compensatory systems are first illustrated with an example in audit planning, and second explained how the model could overcome the deficiencies of heuristics specifically in an audit context.
文摘The main goal of this research is to enhance the auditor＇s judgment ability in going concern opinion by applying bankruptcy prediction models as an analytical procedure. Data for this research have been collected through questionnaires. The statistical population consists of auditors who are members of Iranian Association of Certified Public Accountants （IACPA）. The research results reflect that： （1） Auditors do not use statistical techniques for assessing going concern as an analytical procedure; （2） Auditors do not use these techniques as a tool to decrease the bias of judgments in assessing the going concern assumption; （3） Auditors do not use statistical techniques to assess audit risk in the planning stage; （4） Auditors do not use statistical techniques to assess audit risk in the final stage. Furthermore this research shows that auditors believe that the ＂standard concerning usage of analytical procedures needs more clarification＂ and ＂statistical bankruptcy predication models can help auditors in the planning stage＂. The other goal of this research is to show different auditor＇s judgments in assessing the going concern opinion with and without applying the bankruptcy prediction models as an analytical procedure. The result shows that the judgment of auditors toward the going concern assumption has improved by using statistical bankruptcy predication models.
