Title: Audit evidences and modelling audit risk using goal programming

Authors: Saeed Askary; Jean-Paul M. Arnaout; Naser M. Abughazaleh

Addresses: College of Business Administration, Gulf University for Science and Technology (GUST), P.O. Box 7207 Hawally, 32093, Kuwait ' Business Administration Department, Gulf University for Science and Technology (GUST) P.O. Box 7207 Hawally, 32093, Kuwait ' College of Business Administration, Gulf University for Science and Technology (GUST), P.O. Box 7207 Hawally, 32093, Kuwait

Abstract: Managing audit risk and allocating auditing resources are among the major problems faced by external auditors. To address this problem, this paper introduces external auditors to goal programming (GP), an innovative technique that can be used in audit risk models (ARM). The value of an audit report depends on the audit risk: the lower the audit risk, the higher the quality of the audit report. Using GP when calculating audit risk enhances audit quality by helping auditors to manage the multi-choice decision making. However, to date there has been no consideration of GP in ARM. This research provides insights that can be used by audit firms of any size, including those in the Big 4.

Keywords: audit risk model; ARM; audit evidence; control risk; detection risk; goal programming; GP.

DOI: 10.1504/IJADS.2018.088637

International Journal of Applied Decision Sciences, 2018 Vol.11 No.1, pp.18 - 35

Received: 13 Dec 2016
Accepted: 20 Apr 2017
Published online: 13 Dec 2017 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article