Practical Benefits of Discounting Historical Audit Samples Using Normalized Power Priors

Koen Derks, Lotte Mensink, Wiert Smid, Jacques de Swart, Ruud Wetzels, Center of Accounting, and Control, Nyenrode Business University, the Netherlands, PwC Accountants, the Netherlands, PwC Advisory, the Netherlands

Journal of Accounting, Auditing & Finance

Published online on May 07, 2026

Abstract

Journal of Accounting, Auditing & Finance, Ahead of Print.
When establishing an overall audit strategy, auditors must assess the risk of material misstatement and determine the nature, timing and extent of further audit procedures. Among other things, the nature, timing and extent of further audit procedures is ...