Development of a decision support system for client acceptance in independent audit process

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dc.authoridCEBI, SELCUK/0000-0001-9318-1135
dc.contributor.authorCebi, Selcuk
dc.contributor.authorKarakurt, Necip Fazil
dc.contributor.authorKurtulus, Erkan
dc.contributor.authorTokgoz, Bunyamin
dc.date.accessioned2024-10-29T17:58:23Z
dc.date.available2024-10-29T17:58:23Z
dc.date.issued2024
dc.departmentTekirdağ Namık Kemal Üniversitesi
dc.description.abstractIntelligent Information Technology (IIT) applications are crucial in the audit process, enhancing quality, effectiveness, and efficiency. The client acceptance process (CAP), one of the critical audit steps, involves subjective evaluations where business managers' claims intersect with independent audit firm managers' expectations. This subjective nature introduces the potential for errors or misjudgments, impacting audit time and costs. In this paper, therefore, we propose a decision support system considering both auditors' subjective judgments and financial data variations for accepting or rejecting a client enterprise. The decision support system consisting of the Fuzzy Analytic Hierarchy Process (AHP), the logistic regression model, and the fuzzy inference system comprises four phases. In the first phase, a logistic regression model is developed using financial ratios to determine the client's probability of being in a close monitoring market (CMM) which represents publicly traded firms that are struggling to meet specific financial indicators or that are exposed to certain risks. In the second phase, the evaluation criteria used by the audit firm to measure the market reputation of the client enterprise are defined, and the weights of the evaluation criteria are obtained by using Fuzzy AHP. In the third phase, the Client Acceptance Score (CAS) representing market reputation of the client is calculated by incorporating the results of a reputation survey and applying the weights assigned to the evaluation criteria obtained in the second phase. Finally, client acceptance risk level (CARL) is obtained by using a fuzzy inference system and a rule-based defined by auditors. The CMM probability value and CAS score obtained in previous phases are used as input values of the fuzzy inference system. The CARL score guides the audit firm in deciding whether to engage with the client. To illustrate the applicability of the proposed model, a case study has been given in the paper.
dc.description.sponsorshipScientific and Technological Research Council of Turkey (TUBITAK) [TEYDEB 1507-7210510]; TUBITAK
dc.description.sponsorshipThis study was supported by Scientific and Technological Research Council of Turkey (TUBITAK) under the Grant Number TEYDEB 1507-7210510. The authors thank to TUBITAK for their support.
dc.identifier.doi10.1016/j.accinf.2024.100683
dc.identifier.issn1467-0895
dc.identifier.issn1873-4723
dc.identifier.scopus2-s2.0-85192889388
dc.identifier.scopusqualityQ1
dc.identifier.urihttps://doi.org/10.1016/j.accinf.2024.100683
dc.identifier.urihttps://hdl.handle.net/20.500.11776/14275
dc.identifier.volume53
dc.identifier.wosWOS:001242613900001
dc.identifier.wosqualityN/A
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherElsevier
dc.relation.ispartofInternational Journal of Accounting Information Systems
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.subjectClient acceptance
dc.subjectIndependent audit
dc.subjectFraud detection
dc.subjectFuzzy set theory
dc.subjectAHP
dc.subjectMachine learning
dc.subjectDecision support system
dc.titleDevelopment of a decision support system for client acceptance in independent audit process
dc.typeArticle

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