The Bayesian approach in objectifying of auditor's judgement and an application

The aim of this study is objectifying of auditor?s judgement. For this aim, audit process is discussed as a decision-making process and the importance of audit judgement during the process is expressed. It is determined that the methods and techniques excluding the audit judgement may be inadequate, and various methods and techniques possible to be used in objectifying of auditor?s judgement are explained. In this context, the Bayesian approach is proposed as a general approach for objectfying the auditor?s judgement and it is investigated if it can be efficiently used in different periods of auditing process. In the study; objectifying of auditor?s judgement is discussed by Bayesin approach in the analysis of various variables that are effective in the preengagement investigation and client acceptance. For this purpose, the Bayesian analysis is done by the data collected by interviews of auditors charged in an auditing company. In the study, it is found out that in a model in which the prior probability distribution is developing the auditors judgement; the variables may be effective in the posibility of the auditors client acceptance. As a result, by adopting Bayesian approach as a general approach in auditing process, the effectiveness and productivity of the auditing process may be increased. Keywords: Bayesian Approach, Auditor?s Judgement, Decision Making Process in Auditing, Preengagement investigation and client acceptance.