A computational model of loan loss judgments

A model is presented of the audit judgment process of estimating what portion, if any, of a commercial loan is uncollectible. Evaluating loan collectibility can be difficult because the process is only semi-structured, and it can be contextually both complex and information intensive. Using a produc...

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Veröffentlicht in:	Auditing : a journal of practice and theory 1997-03, Vol.16 (1), p.99
Hauptverfasser:	Wright, William F, Willingham, John J
Format:	Artikel
Sprache:	eng
Schlagworte:	Accounting and auditing Auditing Auditors Bad debts Business losses Cognition & reasoning Commercial credit Commercial loans Computers Data processing Experiments Financial institutions Knowledge Loans Memory Operations research Problem solving Studies Task analysis
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Beschreibung
Zusammenfassung:	A model is presented of the audit judgment process of estimating what portion, if any, of a commercial loan is uncollectible. Evaluating loan collectibility can be difficult because the process is only semi-structured, and it can be contextually both complex and information intensive. Using a production system architecture, the model provides a loan collectibility conclusion and a line of reasoning to explain and support the conclusion. Expert reasoning is applied contextually, given characteristics of the loan and the borrower. Model validation evidence is reported.
ISSN:	0278-0380 1558-7991