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Multivariate probit model for a priori assessment of behavioral risks in audit


  • Arzhenovskiy, Sergey

    (Rostov State University of Economics, Rostov-on-Don, Russian Federation)

  • Sinyavskaya, Tatiana

    (Rostov State University of Economics, Rostov-on-Don, Russian Federation)

  • Bakhteev, Andrey

    (Rostov State University of Economics, Rostov-on-Don, Russian Federation)


The paper presents an original approach to assessing behavioral risks during audit procedures based on a multivariate probit model. Dependent variables in the model were binary behavioral characteristics of individual responsible for financial statement: tolerance to legislation violations, pathological monetary type, propensity to increased risk, belief in impunity, and illiteracy in accounting legislation. It is found that the same factors tend to increase the chances of having one and reduce the chances of having another characteristic, which does not allow us to formulate the “highest risk” profile. The results can be used by auditors in the procedure of assessing the risks of falsification of financial statement.

Suggested Citation

  • Arzhenovskiy, Sergey & Sinyavskaya, Tatiana & Bakhteev, Andrey, 2020. "Multivariate probit model for a priori assessment of behavioral risks in audit," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 60, pages 102-114.
  • Handle: RePEc:ris:apltrx:0409

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    References listed on IDEAS

    1. Clinton Free, 2015. "Looking through the fraud triangle: a review and call for new directions," Meditari Accountancy Research, Emerald Group Publishing, vol. 23(2), pages 175-196, August.
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    3. Young, Gary & Valdez, Emiliano A. & Kohn, Robert, 2009. "Multivariate probit models for conditional claim-types," Insurance: Mathematics and Economics, Elsevier, vol. 44(2), pages 214-228, April.
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    More about this item


    multivariate probit; endogeneity; behavioral characteristics; risk of financial statement falsification;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing


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