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The complexity of the audit process: : Judgment and decision making

This paper explains what recognition the auditor has of theoretical judgment and decision making subjects surrounding the audit process. The auditors’ judgment and decision making skills seem to be more challenged when it comes to estimating their clients’ valuations. Therefore, the audit process of fair value measures (FVM) is used to charterer the recognition more clearly. Attention to this topic is warranted for several reasons. First, FVM was implemented on the Swedish market in 2005 and is relatively recent to Swedish auditors. Second, to our knowledge no similar study, regarding the Swedish audit firms, has been conducted within this area. Third, the evidence, drawn from previous research, of what recognition the auditors have of the theoretical judgment and decision making subjects seem to be more indirect than direct and we also extend the previous research. We find, through semi-structured interviews with employees of the ‘Big four’, that both judgment and decision making are acknowledged as possible issues. However, we also find that certain areas within these two categories are unrecognized to be of immediate concern.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-180174
Date January 2012
CreatorsKrisandersson, Patric, Hulthin, Johan
PublisherUppsala universitet, Företagsekonomiska institutionen, Uppsala universitet, Företagsekonomiska institutionen
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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