On the Use of Bayesian Statistics in the Audit Process.

Key Points

• The aim is to explore the application of Bayesian statistics in auditing, particularly in decision-making during financial audits.
• Investigated the nature of auditor's decision-making processes.
• Examined the usage of statistical sampling in substantive tests during audits.
• Discussed statistical methods and their philosophical implications in auditing.
• Identified limited use of statistical sampling by auditors in practice.
• Highlighted potential efficiency improvements through Bayesian statistical methods.
• Concluded that adopting Bayesian approaches can enhance audit decisions.