IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v42y2002i3p251-277.html
   My bibliography  Save this article

Multiple hypothesis evaluation in auditing

Author

Listed:
  • Rajendra P. Srivastava
  • Arnold Wright
  • Theodore J. Mock

Abstract

In many audit tasks, auditors evaluate multiple hypotheses to diagnose the situation. Research suggests this is a complex task that individuals have difficulty performing. Further, there is little guidance in professional standards or literature dealing with the many complexities present in the audit environment. Using probability theory, this study derives the appropriate revision of likelihoods for multiple hypotheses given different realistic audit conditions. The analysis shows that the relationships among the hypotheses dramatically impact the use of audit evidence and the resulting pattern of probability revisions. We also identify testable hypotheses to guide future research and discuss practice implications regarding ways to improve the effectiveness of analytical procedures.

Suggested Citation

  • Rajendra P. Srivastava & Arnold Wright & Theodore J. Mock, 2002. "Multiple hypothesis evaluation in auditing," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 42(3), pages 251-277, November.
    • Handle: RePEc:bla:acctfi:v:42:y:2002:i:3:p:251-277
    DOI: 10.1111/1467-629X.00077
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-629X.00077
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-629X.00077?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:42:y:2002:i:3:p:251-277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.