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Base rates in the applied domain of accounting

Published online by Cambridge University Press:  04 February 2010

Lisa Koonce
Lisa Koonce
Affiliation:
Department of Accounting, The University of Texas, Austin, TX 78712. lisakoonce@mail.utexas.edu
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Abstract

Koehler's call for a reanalysis of the base rate fallacy is particularly important in the applied domain of accounting, since base rate data appear to be an important input for many accounting tasks. In this commentary I discuss the use of base rates in accounting and explain why more flexible standards of performance are important when judging the use of base rates.

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Open Peer Commentary
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Behavioral and Brain Sciences , Volume 19 , Issue 1 , March 1996, pp. 29 - 30
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Copyright © Cambridge University Press 1996

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