A Hybrid Computer Assisted Auditing Techniques In Auditing Risk Management

• Main Authors: Hsu, Ming-Fu, 徐銘甫
• Other Authors: Pai, Ping-Feng
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/54639207305419236438

博士 === 國立暨南國際大學 === 國際企業學系 === 100 === To protect the global economic market, fraudulent financial statements (FFS) detection is essential. Recently, FFS have begun to grow extremely, which has deteriorated the confidence of investors and shocked the financial systems. Professional literature indicated that failure in detecting FFS rested with auditor’s insufficient capability and lacked of effective assisted mechanism. Auditing judgment consistency has proven that it is subject to auditor’s work experience and the ability of problem solving, so that leads the auditing decisions encountered in today’s turbulent business environment to cover with a layer. In addition, most FFS is caused by top managers who have the authority to override the internal controls and deploys de facto power against audit committee. Such managers understand the limitation of an audit and the insufficient of standard auditing procedures in detecting FFS. There is an urgent need for another effective detecting mechanism. The study proposed a hybrid model to reduce these risks. The model integrates multiple feature selection combination which was grounded on ensemble learning, support vector machine (SVM) and knowledge extraction approaches. The advantage of multiple feature selection can eliminate the errors made by singular approach and determine appropriate features and mechanisms by multiple criteria decision making (MCDM) technique. The SVM has superior forecasting accuracy comes with a critical defects is lacking of interpretability. Thus, the knowledge extraction approaches were employed to tackle with the obscure nature of SVM and yield comprehensive rules as well as enhance its empirical application. The proposed model, which is supported by real example, can assist both internal and external auditors who must allocate limited auditing resource. The decision rules derived from the proposed model can be viewed as a roadmap to modify the personal capital structure. In addition, the investigation further examines the effectiveness of corporate transparency and information disclosure index on FFS. The governors can consider the potential implication and formulate future policy to sound the stability of financial market.