Premium
Use of forward versus backward reasoning during audit analytical procedures: evidence from a computerised‐process‐tracing field study
Author(s) -
O'Donnell Ed
Publication year - 2004
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.2004.00097.x
Subject(s) - audit , judgement , process (computing) , analytic reasoning , field (mathematics) , tracing , computer science , management science , reasoning system , deductive reasoning , psychology of reasoning , psychology , model based reasoning , artificial intelligence , accounting , epistemology , mathematics , knowledge representation and reasoning , engineering , business , philosophy , pure mathematics , operating system
Audit judgement research has widely assumed that auditors rely primarily on backward reasoning during analytical procedures but the relative use of forward reasoning has not been directly examined. The present study explains how auditors use backward and forward reasoning during analytical procedures, discusses evidence from other research suggesting that forward reasoning could be more prevalent, and examines the relative use of forward reasoning during analytical procedures with data from a computerised process‐tracing field study. Results suggest that auditors rely extensively on forward reasoning when using analytical procedures. Findings motivate future research that examines when forward and backward reasoning are most effective.