On maximum entropy priors and a most likely likelihood in auditing

There are two basic questions auditors and accountants must consider when developing test and estimation applications using Bayes' Theorem: What prior probability function should be used and what likelihood function should be used. In this paper we propose to use a maximum entropy prior probabi...

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Detalles Bibliográficos
Autores: Hernández Bastida, Agustín, Martel Escobar, Mª del Carmen, Vázquez Polo, Francisco J.
Tipo de recurso: artículo
Fecha de publicación:1998
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/4089
Acceso en línea:https://hdl.handle.net/2099/4089
Access Level:acceso abierto
Palabra clave:Statistics
Decision theory
Maximum entropy
Partial prior information
Auditing
Estadística
Teoria de la decisió
Classificació AMS::62 Statistics::62A01 Foundational and philosophical topics
Classificació AMS::62 Statistics::62C Decision theory
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spelling On maximum entropy priors and a most likely likelihood in auditingHernández Bastida, AgustínMartel Escobar, Mª del CarmenVázquez Polo, Francisco J.StatisticsDecision theoryMaximum entropyPartial prior informationAuditingEstadísticaTeoria de la decisióClassificació AMS::62 Statistics::62A01 Foundational and philosophical topicsClassificació AMS::62 Statistics::62C Decision theoryThere are two basic questions auditors and accountants must consider when developing test and estimation applications using Bayes' Theorem: What prior probability function should be used and what likelihood function should be used. In this paper we propose to use a maximum entropy prior probability function MEP with the most likely likelihood function MLL in the Quasi-Bayesian QB model introduced by McCray (1984). It is defined on an adequate parameter. Thus procedure only needs an expected value of θ0 known (in this paper the expected tainting) to obtain a MEP all an auditor or accountant need to supply are the range, as with any other prior, and the expected tainting, θ0. We will see some practical applications of the methodology proposed about internal control evaluation in auditing.Institut d'Estadística de Catalunya19981998-01-0120072007-12-07journal articlehttp://purl.org/coar/resource_type/c_6501NAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/2099/4089reponame:UPCommons. Portal del coneixement obert de la UPCinstname:Universitat Politècnica de Catalunya (UPC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial-NoDerivs 2.5 Spainhttp://creativecommons.org/licenses/by-nc-nd/2.5/es/info:eu-repo/semantics/openAccessoai:upcommons.upc.edu:2099/40892026-05-27T15:37:01Z
dc.title.none.fl_str_mv On maximum entropy priors and a most likely likelihood in auditing
title On maximum entropy priors and a most likely likelihood in auditing
spellingShingle On maximum entropy priors and a most likely likelihood in auditing
Hernández Bastida, Agustín
Statistics
Decision theory
Maximum entropy
Partial prior information
Auditing
Estadística
Teoria de la decisió
Classificació AMS::62 Statistics::62A01 Foundational and philosophical topics
Classificació AMS::62 Statistics::62C Decision theory
title_short On maximum entropy priors and a most likely likelihood in auditing
title_full On maximum entropy priors and a most likely likelihood in auditing
title_fullStr On maximum entropy priors and a most likely likelihood in auditing
title_full_unstemmed On maximum entropy priors and a most likely likelihood in auditing
title_sort On maximum entropy priors and a most likely likelihood in auditing
dc.creator.none.fl_str_mv Hernández Bastida, Agustín
Martel Escobar, Mª del Carmen
Vázquez Polo, Francisco J.
author Hernández Bastida, Agustín
author_facet Hernández Bastida, Agustín
Martel Escobar, Mª del Carmen
Vázquez Polo, Francisco J.
author_role author
author2 Martel Escobar, Mª del Carmen
Vázquez Polo, Francisco J.
author2_role author
author
dc.subject.none.fl_str_mv Statistics
Decision theory
Maximum entropy
Partial prior information
Auditing
Estadística
Teoria de la decisió
Classificació AMS::62 Statistics::62A01 Foundational and philosophical topics
Classificació AMS::62 Statistics::62C Decision theory
topic Statistics
Decision theory
Maximum entropy
Partial prior information
Auditing
Estadística
Teoria de la decisió
Classificació AMS::62 Statistics::62A01 Foundational and philosophical topics
Classificació AMS::62 Statistics::62C Decision theory
description There are two basic questions auditors and accountants must consider when developing test and estimation applications using Bayes' Theorem: What prior probability function should be used and what likelihood function should be used. In this paper we propose to use a maximum entropy prior probability function MEP with the most likely likelihood function MLL in the Quasi-Bayesian QB model introduced by McCray (1984). It is defined on an adequate parameter. Thus procedure only needs an expected value of θ0 known (in this paper the expected tainting) to obtain a MEP all an auditor or accountant need to supply are the range, as with any other prior, and the expected tainting, θ0. We will see some practical applications of the methodology proposed about internal control evaluation in auditing.
publishDate 1998
dc.date.none.fl_str_mv 1998
1998-01-01
2007
2007-12-07
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/2099/4089
url https://hdl.handle.net/2099/4089
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivs 2.5 Spain
http://creativecommons.org/licenses/by-nc-nd/2.5/es/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivs 2.5 Spain
http://creativecommons.org/licenses/by-nc-nd/2.5/es/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Institut d'Estadística de Catalunya
publisher.none.fl_str_mv Institut d'Estadística de Catalunya
dc.source.none.fl_str_mv reponame:UPCommons. Portal del coneixement obert de la UPC
instname:Universitat Politècnica de Catalunya (UPC)
instname_str Universitat Politècnica de Catalunya (UPC)
reponame_str UPCommons. Portal del coneixement obert de la UPC
collection UPCommons. Portal del coneixement obert de la UPC
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,300724

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