Download or read book The Effect of Experience on the Use of Irrelevant Evidence in Auditor Judgment written by Sandra Waller Shelton and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditors encounter both relevant and irrelevant information during the performance of audit tasks. Prior studies have shown that the presence of irrelevant information weakens the impact of relevant information on auditors' judgments. Such studies, however, have not considered whether experience moderates the diluting effect of irrelevant information on auditors' judgments. This study reports the results of an experiment in which the effect of irrelevant information on the going-concern judgments of less experienced auditors -- audit seniors -- is compared to the effect of irrelevant information on the going-concern judgments of more experienced auditors -- audit managers and partners. The experiment re-affirms that irrelevant information does have a diluting effect on the judgments of audit seniors but provides new evidence that irrelevant information does not have a diluting effect on the judgments of audit managers and partners.
Download or read book The Effect of Nondiagnostic Evidence and Accountability on Auditor Judgment written by Sandra W. Shelton and published by . This book was released on 1994 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advances in Accounting Behavioral Research written by Khondkar E. Karim and published by Emerald Group Publishing. This book was released on 2019-09-30 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focusing on research that examines both individual and organizational behavior relative to accounting, this volume of Advances in Accounting Behavioral Research offers a perspectives on topics such as tax compliance, risk judgement, and affiliation bias.
Download or read book Accountability and Affect in Auditor Judgment written by Brad A. Schafer and published by . This book was released on 2007 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether auditors' affect toward client management impacts an auditor's objective evaluation of evidence in fraud likelihood judgments. In addition to an overall judgment, this research also explores whether affect impacts all evidence evaluation equally or impacts only certain evidence evaluation in auditors' judgment processes. This research proposes client likeability will impact inexperienced auditors' evidence evaluation through errant attribution to specific evidence statements rather than uniformly through the evaluation process. Accountability and experience are included as potential moderators to the errant attribution. Results indicate that likeability, experience, and accountability interact impacting the overall fraud likelihood judgment. Specifically, inexperienced and non-accountable auditors erroneously include affect in their overall fraud likelihood judgments. For individual evidence assessments, client likeability impacts inexperienced auditors' assessments of specific statements, but not all client provided statements. However, client likeability does not impact experienced auditors individual statement assessments. The implication of these findings suggest that through experience and training, audit professionals gain the ability to identify and exclude irrelevant factors in professional judgment tasks.
Download or read book Advances in Accounting Behavioral Research written by Vicky Arnold and published by Emerald Group Publishing. This book was released on 2006-06-05 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents an empirical research in accounting theory. This book includes content that crosses into the fields of applied psychology, sociology, management science, and economics.
Download or read book Using an Expert System to Debias Auditor Judgment written by Danielle R. Lombardi and published by . This book was released on 2012 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the audit profession, judgment and decision making are essential parts of successfully completing an audit. Judgment is a crucial element of the audit process, especially with recent increase in audit regulations. At every step of the audit, auditors are required to make several complex judgments. Psychology and audit research demonstrate that auditors are susceptible to numerous biases, two of which are exacerbated by the accountability inherent in the audit environment. Since the nature of the audit environment requires auditor accountability, this dissertation examines two biases that have been shown to be exacerbated by accountability - the dilution effect and acceptability heuristic bias. This dissertation consists of three separate essays. Two of this dissertation's essays experimentally examine whether use of an expert system as a decision aid in developing less experienced auditor judgment mitigates these two biases - the dilution effect (Chapter 2) and the acceptability heuristic (Chapter 3) - on auditor judgment in a complex task (fraud risk assessment). An expert system was chosen as the decision aid because research has demonstrated that expert systems have a high level of accuracy, resulting in more appropriate judgments made by less experienced auditors. The third essay is an exploratory study using process tracing that analyzes the decision making process of less experienced auditors using the expert system in an environment without and with judgment bias present - the dilution effect. The first essay experimentally examines whether an expert system assists less experienced auditors in making lower fraud risk assessments and mitigates the dilution effect. The dilution effect is a judgment bias which occurs when too much focus is spent on irrelevant information. This bias is exacerbated in auditors when they are knowingly held accountable to their superiors. A solution has yet to be offered to materially reduce this bias. The second essay experimentally examines whether the use of an expert system as a decision aid mitigates acceptability heuristic. The acceptability heuristic is the shifting towards the preferences of another and adopting a position that is deemed socially acceptable. This bias predominantly occurs when auditors are knowingly held accountable to their superiors. Prior studies have shown less experienced auditors who are aware of the views of audit partners, will align their judgments to agree with that of the partners'. This negative auditor judgment bias has been an area researchers have vastly studied, yet a method to reduce it has not been offered in the literature. The third essay is an exploratory analysis which uses process tracing to analyze the thought processes of less experienced auditors in making decisions in an environment where a judgment bias occurs - the dilution effect. This essay used a subset of participants from the dilution effect study (Chapter 2) and during the experiment, participants were asked to think aloud to gain further insight into the dilution effect. The think aloud process also captures factors about the process of using the expert system which contributed towards the mitigation of this bias. Auditor decision making process with and without the use of an expert system will be captured both within and between the participant groups.
Download or read book Auditing Teams written by Mara Cameran and published by Taylor & Francis. This book was released on 2017-03-31 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent audit failures which have rocked financial markets worldwide have accentuated the need for a better understanding of the link between risk, control and audit quality; as well as emphasising the need to open the "black box" of the ways auditing firms actually function. Reflecting these imperatives, Auditing Teams unravels the organizational and management issues in audit firms that are key to achieving effectiveness in service provision. Specifically, this key research reflects upon the relevance and dynamics of auditing teams and their impact on auditing quality, and specifically responding to the recent claim from regulators which highlights auditing team characteristics as the source of wide variations in quality. By leveraging different perspectives – auditing, management accounting, organization and psychology – to investigate auditing teams and basing on evidence collected from the professional world, this book will provide a unique insight into the role of auditing teams on audit quality. It will be of great interest to scholars and advanced students in auditing, as well as to practitioners and regulators in the field.
Download or read book The Influence of Information Order Effects and Trait Professional Skepticism on Auditors Belief Revisions written by Kristina Yankova and published by Springer. This book was released on 2015-02-10 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: Kristina Yankova addresses the question of what role professional skepticism plays in the context of cognitive biases (the so-called information order effects) in auditor judgment. Professional skepticism is a fundamental concept in auditing. Despite its immense importance to audit practice and the voluminous literature on this issue, professional skepticism is a topic which still involves more questions than answers. The work provides important theoretical and empirical insights into the behavioral implications of professional skepticism in auditing.
Download or read book The Effects of Experience on Auditors Ability to Integrate Audit Evidence written by Cindy Lee Moeckel and published by . This book was released on 1991 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Audit Experience and Probability Knowledge on Auditors Use of Heuristics in Judgments Under Uncertainty written by John M. Coulter and published by . This book was released on 1994 with total page 430 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advances in Management Accounting written by Marc J. Epstein and published by Emerald Group Publishing. This book was released on 2008-12-24 with total page 405 pages. Available in PDF, EPUB and Kindle. Book excerpt: Features articles on a variety of topics in management accounting that are relevant to researchers in both practice and academe. This work is suitable for management accounting scholars.
Download or read book A Reexamination of the Dilution of Auditor Misstatement Risk Assessments written by Suzanne M. Perry and published by . This book was released on 2015 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many external parties such as investors, creditors, and regulatory agencies, use a company's financial statements in their decision-making. In doing so, they rely on audit opinions on whether financial statements are fairly stated. However, evidence suggests that there are factors in the audit environment that influence auditor judgments. For example, nondiagnostic client information dilutes auditor judgments when compared to judgments based on diagnostic information alone, especially for less experienced auditors (Hackenbrack 1992; Hoffman and Patton 1997; Glover 1994; Shelton 1999). High time pressure conditions mitigate this effect by refocusing auditor attention toward relevant client information, therefore reducing the impact of nondiagnostic information (Glover 1994, 1997). This research study examines other common audit environment factors to determine if they too influence audit judgment results. An online questionnaire of 149 auditors, CPAs and other accounting professionals indicate that the inclusion of nondiagnostic client information results in a significant change in auditor judgments. The direction of this change follows a theorized pattern; risk assessments that were initially high are reduced, while those that were initially low are increased. Significance was not consistently found for a workload and PCAOB effect on auditor judgment. However, a comparison of the absolute value of dilution effect means across conditions reveals some trending for the proposed unwanted effect of high workload, and the beneficial effect of PCAOB guidance. These results have important implications for auditing research and practice. It extends previous archival research on workload effects and uses a unique questionnaire design to reexamine workload pressures in a behavioral setting. The results of hypothesis testing on workload pressure and PCAOB guidance, although lacking consistent statistical significance; exhibit trends that agree with proposed theoretical relationships. Tests on the effects of nondiagnostic information show strong statistical support for previous studies in the area of psychology and audit. This study's greatest contribution suggests that audit pressures do not produce equivalent effects on auditor judgment; time pressure improves audit judgment, while workload pressure does not (Glover 1994, 1997). These results can be explained by examining the relationship between stress and audit judgment performance (Choo 1995, Yerkes and Dodson 1908). Different types and different degrees of audit pressures may correspond to different levels of audit pressure. Low to moderate levels of audit pressure, such as the level of time pressure used in Glover's (1994, 1997) study improve audit performance. Higher audit pressures, such as high workload during an auditor's busy season, may lower audit performance.
Download or read book The Effect of Nondiagnostic Evidence and Accountability on Auditor Judgment written by Sandra Waller Shelton and published by . This book was released on 1997 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Georgetown Journal of Law Public Policy written by and published by . This book was released on 2008 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Its Implications on Accounting and Finance written by Alqatan, Ahmad and published by IGI Global. This book was released on 2020-09-25 with total page 425 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.
Download or read book The Effects of Experience on Auditors Ability to Integrate Audit Evidence written by Cindy Lee Moeckel and published by . This book was released on 1991 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Attitudes Volume 2 Applications written by Dolores Albarracin and published by Routledge. This book was released on 2018-10-10 with total page 898 pages. Available in PDF, EPUB and Kindle. Book excerpt: Attitudes are evaluations of people, places, things, and ideas. They help us to navigate through a complex world. They provide guidance for decisions about which products to buy, how to travel to work, or where to go on vacation. They color our perceptions of others. Carefully crafted interventions can change attitudes and behavior. Yet attitudes, beliefs, and behavior are often formed and changed in casual social exchanges. The mere perception that other people—say, rich people— favor something may be sufficient to make another person favor it. People’s own actions also influence their attitudes, such that they adjust to be more supportive of the actions. People’s belief systems even change to align with and support their preferences, which at its extreme is a form of denial for which people lack awareness. These two volumes of The Handbook of Attitudes provide authoritative, critical surveys of theory and research about attitudes, beliefs, persuasion, and behavior from key authors in these areas. This second volume covers applications to measurement, behavior prediction, and interventions in the areas of cancer, HIV, substance use, diet, and exercise, as well as in politics, intergroup relations, aggression, migrations, advertising, accounting, education, and the environment.
