Evaluating The Performance of Machine Learning Models in Audit Opinion Prediction – A Study in Vietnam
Journal Title: Engineering and Technology Journal - Year 2024, Vol 9, Issue 10
Abstract
This study investigates the effectiveness of machine learning models in predicting audit opinions using a dataset from the FiinPro-X platform, comprising 9,783 audited consolidated financial statements from public companies listed on Vietnamese stock exchanges from 2016 to 2023. The dataset spans various industries, excluding banks and financial institutions, and focuses on identifying key financial, non-financial, and qualitative variables that influence audit opinions. Six supervised learning algorithms were applied—Logistic Regression, K-Nearest Neighbors (KNN), Decision Trees, Random Forests, Support Vector Machines (SVM), and Naive Bayes—evaluated based on their ability to predict both fully acceptable (unqualified) and non-fully acceptable audit opinions. All data processing and model training were implemented in a Python environment. The Random Forest model demonstrated the best overall performance, achieving an accuracy of 0.868 and an AUC-ROC of 0.87, though its F1 score for predicting non-fully acceptable audit opinions was lower (0.585). This suggests that while machine learning models can improve prediction accuracy, challenges remain in handling imbalanced data and non-linear relationships among input variables. The study also reduced the number of features by 30%, improving the models’ performance. Future research should further refine data and feature construction processes to ensure comparability and practical applicability.
Authors and Affiliations
Dang Dinh TanHo
A REVIEW ON APPLICATIONS OF METAHEURISTIC ALGORITHMS IN MULTILEVEL THRESHOLDING IMAGE SEGMENTATION
In the field of image analysis, segmentation is one of the most important pre-processing steps. One way to achieve segmentation is the use of threshold selection. In particular, multilevel image thresholding is a very im...
THE POLLUTED SITUATION AND PROPOSED SOLUTIONS TO MINIMIZE SINGLE-USE PLASTIC WASTE IN QUAN TRIEU WARD - THAI NGUYEN CITY - THAI NGUYEN PROVINCE, VIETNAM
The survey results show that: In Quan Trieu ward, the amount of disposable plastic waste accounts for about 35-40% of the total daily-life waste and tends to increase. The rapid plastic waste classification includes plas...
Efficient Use of Water under Irrigation Management Practices for Surface Irrigated Rice
With the continuous climate change we are experiencing; extreme heat, drought, and declining water supplies that affect our rain fed and irrigation systems resulting to a higher demand for water for evaporation and evapo...
INTEGRATION STRATEGY FOR KAMBANG AND TANGKAHAN FISH LANDING BASES
The Kambang Fish Landing Base is a Type D port (with a service capacity of 2,000 tonnes per year).The fish production of PPI Kambang is the highest in Pesisir Selatan Regency with an existing fishing potential of 1038.15...
PARTICLE SWARM OPTIMIZATION BASED LQR CONTROL OF AN INVERTED PENDULUM
Development of new control methods and the improvement of existing control techniques have been interest of researchers for many years. Inverted pendulum systems have been used to test the performance of various control...