Prospect theory approach to determining auditors' judgment in substantive testing.
Su, Curreem Min.
Peh, Teng Kai.
Date of Issue2002
College of Business (Nanyang Business School)
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 Preference and Source Dependence.
Final Year Project (FYP)
Nanyang Technological University