MODELLING THE PRICE OF AUDIT BY REGRESSION MODELLS WITH BINARY VARIABLES

Jolanta Dalia Staliuniene, Stanislava Stunguriene

Abstract


After the theoretical analysis of audit price as the providence of work time budget and audit command risk the regression equations theory with binary variables was adopted to model audit price in the risk management context. Because the theoretical pricing models are complicated auditors meet difficulties in application of their, but in that case they always can balance on the line of efficiency. The qualitative and quantitative analysis of audit was done in this paper, and the results were used as the basis for modeling audit price for client under the risk conditions of uncertainty. As the regression models with binary variables were adopted for audit price management the optimal margins of audit prices were determined. The optimal margins of audit price allow allocate time within the team for the main goal: the level of audit risk must be unobjectionable for all time of audit considering the complexity. The regression equation with binary variables was found and used for the goal to discover not efficient audits. Under the results of the author’s research the strategies of effective working audits were formulated. Also the adaptation of the results of previous papers about applicability of learning curves and the theory of waiting lines was certified. The results of this paper and previous ones were collated, and the research of optimal audit price was extended.Keywords: risk intelligence, regression equations theory, binary variables, audit risk management.


Keywords


regression equations theory; binary variables; audit risk management

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Print ISSN: 1822-6515
Online ISSN: 2029-9338