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AN ECONOMIC MODELING APPROACH FOR THE DETERMINATION OF MATERIALITY IN AUDITING

 

作者: Michael Crosby,   Robert Plante,   Kwei Tang,  

 

期刊: Decision Sciences  (WILEY Available online 1987)
卷期: Volume 18, issue 1  

页码: 108-115

 

ISSN:0011-7315

 

年代: 1987

 

DOI:10.1111/j.1540-5915.1987.tb01506.x

 

出版商: Blackwell Publishing Ltd

 

关键词: Auditing and Bayesian Procedures

 

数据来源: WILEY

 

摘要:

ABSTRACTThe concept of materiality pervades the audit process. Typically, materiality is determined as a percentage of the total book value of an account or as a percentage of net income. We propose an economically based model that determines that materiality level which minimizes the economic consequences of the audit decision. The proposed model is examined for materiality sensitivity to prior information concerning the quality of the accounting process and to costs incurred as a consequence of the audit decision.

 

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