Usefulness of Data Envelopment Analysis (DEA) has been demonstrated as an analytical procedure for auditors especially in the planning stage of the audit to determine the extent of audit (resource allocation) and to assess the preliminary risk level of the client (going concern). However, several scholars have indicated that the inclusion of financial ratios in DEA models create biased efficiency estimates in implementing analytical procedures. By applying bootstrap technique, the paper provides an application of evaluating the performance of 20 insurance companies with the use of financial data. The results reveal that in the first stage of our sensitivity analysis the efficiencies obtained are biased. However, after applying the bootstrap technique the sensitivity analysis reveals that the efficiency scores have been significantly improved.
Kalate Rahmani R, Anvary Rostamy A A, Aghaei M A, Azar A. Analytical Procedures in Auditing: An Application of Bootstrapped Data Envelopment Analysis Approach. fa 2015; 7 (25) :49-70 URL: http://qfaj.mobarakeh.iau.ir/article-1-366-en.html
