Prospect theory approach to determining auditors' judgment in substantive testing.

• Main Authors: Su, Curreem Min., Peh, Teng Kai., Tang, Mian.
• Other Authors: Foo, See Liang
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Auditing::Auditors
• Online Access: http://hdl.handle.net/10356/8531
• Institution: Nanyang Technological University

This study adopts the Prospect Theory, by Kahneman and Tversky, as a unifying theoretical framework to determine the extent auditors' judgments are affected by risk and uncertainty as well as time pressure. The five axioms tested are Risk Propensity, Risk Seeking, Loss Aversion, Non-Linear Pref...