Using automated equilibrium correction modelling in analytic review
Article
Article Title | Using automated equilibrium correction modelling in analytic review |
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ERA Journal ID | 19111 |
Article Category | Article |
Authors | Omura, Teruyo (Author) and Willett, Roger (Author) |
Journal Title | Managerial Auditing Journal |
Journal Citation | 21 (2), pp. 207-223 |
Number of Pages | 17 |
Year | 2006 |
Place of Publication | United Kingdom |
ISSN | 0268-6902 |
1758-7735 | |
Digital Object Identifier (DOI) | https://doi.org/10.1108/02686900610639329 |
Web Address (URL) | http://www.emeraldinsight.com/0268-6902.htm |
Abstract | Purpose – The purpose of this paper is to show how dynamic regression models based on equilibrium correction principles can be used to form auditor expectations of account balances as part of the analytic review. Design/methodology/approach – The design and method are empirical, using the automated econometric software of PcGets and annual data of the Toyota Company over the period 1950-2004 to generate forecasts of sales and earnings. Research limitations/implications – Analysis is illustrative of a general method and does not Practical implications – Until recently, econometric problems have made the use of dynamic regression models in auditing difficult for non-specialists to implement. Developments in automated software packages such as PcGets now make the use of such procedures by audit practitioners possible. Originality/value – Relatively little is known about dynamic regression models in the accounting and auditing literature. This paper introduces the basic concepts underpinning AECMs and demonstrates their potential to contribute to the analytic review toolkit of the auditor. |
Keywords | auditing, equilibrium methods, time series analysis |
ANZSRC Field of Research 2020 | 350199. Accounting, auditing and accountability not elsewhere classified |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Griffith University |
Queensland University of Technology | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q10wz/using-automated-equilibrium-correction-modelling-in-analytic-review
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