Teaching Advanced Statistical Modeling for Evaluating Audit Samples: A Demonstration Using the Open-Source Software JASP

This tutorial-style demonstration provides accounting and auditing educators the opportunity to engage students in advanced statistical modeling using the free and open-source statistical software JASP. The goal of the demonstration is to give students hands-on experience in statistical modeling and explore how it can be applied in audit sampling to leverage all available information, thereby improving audit efficiency. Drawing from a realistic audit scenario and illustrative data, students fit various Bayesian models of increasing complexity and quantify their efficiency gains. JASP’s user-friendly point-and-click interface streamlines this process, allowing students to focus on understanding the models and interpreting the results without needing coding skills. Feedback on this demonstration has been positive, with students reporting increased knowledge of the practical benefits of statistical modeling in audit sampling.