Predicting Auditor’s Opinions: A Neural Networks Approach

Data mining methods can be used in order to facilitate auditors to issue their opinion. This paper initially applies two Data Mining classification techniques to develop models capable of identifying auditor’s opinion in Iran. The techniques used are Multilayer Perceptron neural network and Logistic...

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Autores principales: Omid Pourheydari, Zeynab Azami
Formato: article
Lenguaje:FA
Publicado: Shahid Bahonar University of Kerman 2010
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Acceso en línea:https://doaj.org/article/f579c7dc8d174d64aecb14599ef3bc52
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spelling oai:doaj.org-article:f579c7dc8d174d64aecb14599ef3bc522021-11-04T19:40:23ZPredicting Auditor’s Opinions: A Neural Networks Approach2008-89142476-292X10.22103/jak.2010.41https://doaj.org/article/f579c7dc8d174d64aecb14599ef3bc522010-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_41_c5d177117635aa1b4a65963a73925634.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XData mining methods can be used in order to facilitate auditors to issue their opinion. This paper initially applies two Data Mining classification techniques to develop models capable of identifying auditor’s opinion in Iran. The techniques used are Multilayer Perceptron neural network and Logistic regression. The period of this research is start of 2003 to end of 2009. The input vector is compose of financial data such as financial distress and non-financial data such as firm litigation. The four developed models are compared in terms of their performance. The results demonstrate the high explanatory power of the MLP model in identification of audit opinion. The model developed is accurate in classifying the total sample correctly with rate 87/75%. The model is also found to outperform traditional logistic regression. The result of this study can be useful to internal and external auditors, Investors, creditors, company decision-makers and other stakeholders.Omid PourheydariZeynab AzamiShahid Bahonar University of Kermanarticleauditor’s opinionmultilayer perceptron neural networksdata mininglogistic regressionAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 1, Iss 3, Pp 77-97 (2010)
institution DOAJ
collection DOAJ
language FA
topic auditor’s opinion
multilayer perceptron neural networks
data mining
logistic regression
Accounting. Bookkeeping
HF5601-5689
spellingShingle auditor’s opinion
multilayer perceptron neural networks
data mining
logistic regression
Accounting. Bookkeeping
HF5601-5689
Omid Pourheydari
Zeynab Azami
Predicting Auditor’s Opinions: A Neural Networks Approach
description Data mining methods can be used in order to facilitate auditors to issue their opinion. This paper initially applies two Data Mining classification techniques to develop models capable of identifying auditor’s opinion in Iran. The techniques used are Multilayer Perceptron neural network and Logistic regression. The period of this research is start of 2003 to end of 2009. The input vector is compose of financial data such as financial distress and non-financial data such as firm litigation. The four developed models are compared in terms of their performance. The results demonstrate the high explanatory power of the MLP model in identification of audit opinion. The model developed is accurate in classifying the total sample correctly with rate 87/75%. The model is also found to outperform traditional logistic regression. The result of this study can be useful to internal and external auditors, Investors, creditors, company decision-makers and other stakeholders.
format article
author Omid Pourheydari
Zeynab Azami
author_facet Omid Pourheydari
Zeynab Azami
author_sort Omid Pourheydari
title Predicting Auditor’s Opinions: A Neural Networks Approach
title_short Predicting Auditor’s Opinions: A Neural Networks Approach
title_full Predicting Auditor’s Opinions: A Neural Networks Approach
title_fullStr Predicting Auditor’s Opinions: A Neural Networks Approach
title_full_unstemmed Predicting Auditor’s Opinions: A Neural Networks Approach
title_sort predicting auditor’s opinions: a neural networks approach
publisher Shahid Bahonar University of Kerman
publishDate 2010
url https://doaj.org/article/f579c7dc8d174d64aecb14599ef3bc52
work_keys_str_mv AT omidpourheydari predictingauditorsopinionsaneuralnetworksapproach
AT zeynabazami predictingauditorsopinionsaneuralnetworksapproach
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