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 The Effects of Audit Expirience and Probability Knowledge on Auditr Use of Heuristics in Judgments Under Uncertainty written by John Michael Coulter and published by . This book was released on 1994 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Judgment and Decision Making Research in Accounting and Auditing written by Robert H. Ashton and published by Cambridge University Press. This book was released on 1995-09-29 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timely and comprehensive study on behavioural decision-making within the field of accounting.
Download or read book Auditing written by Lawrence A. Ponemon and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book has been prepared for those readers who want to maintain their knowledge of current developments in the field of behavioral research as applied to auditing. The articles and papers presented in this volume were selected because they will contribute to the knowledge and advancement of not only the individual researcher or educator, but also of the profession. It is our belief that if research endeavors may be viewed as having stages of life, then the field of behavioral research in auditing is in its genesis. Almost twenty years ago, in speaking of the state of the art of psychology, William Hays expressed a most·appropriate thought: Experimental evidence is accumulating at a rapid rate in psychology, and efforts at constructing psychological theories with mathematical deductive power are constantly being made. However, it seems safe to say that it will be sometime before there are psychological laws and theories on a par with those of physics. The absence of a general theory does not imply that those relations are missing or unhpportant in psychology; the discovery and specification of relations is the process by which those theories are built. (Hays, 1973, p. 40.) In the first chapter, "Experimental Research and the Distinctive Features of Accounting Settings," Robert Libby presents an encompassing and knowledgeable summary of the changes that have taken place during the last decade in human information processing research in accounting and experimental economics as it relates to those issues.
Download or read book Blackwell Handbook of Judgment and Decision Making written by Derek J. Koehler and published by John Wiley & Sons. This book was released on 2008-04-15 with total page 680 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Blackwell Handbook of Judgment and Decision Making is a state-of-the art overview of current topics and research in the study of how people make evaluations, draw inferences, and make decisions under conditions of uncertainty and conflict. Contains contributions by experts from various disciplines that reflect current trends and controversies on judgment and decision making. Provides a glimpse at the many approaches that have been taken in the study of judgment and decision making and portrays the major findings in the field. Presents examinations of the broader roles of social, emotional, and cultural influences on decision making. Explores applications of judgment and decision making research to important problems in a variety of professional contexts, including finance, accounting, medicine, public policy, and the law.
Download or read book Expertise and Decision Support written by F. Bolger and published by Springer Science & Business Media. This book was released on 2007-08-19 with total page 279 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume brings together a range of contributors from Europe and North America. All contributions were especially commissioned with a view to e- cidating a major multidisciplinary topic that is of concern to both academics and practitioners. The focus of the book is on expert judgment and its interaction with decision support systems. In the first part, the nature of expertise is discussed and characteristics of expert judges are described. Issues concemed with the eval- tion of judgment in the psychological laboratory are assessed and contrasted with studies of expert judgment in ecologically valid contexts. In addition, issues concerned with eliciting and validating expert knowledge are discussed. Dem- strations of good judgmental performance are linked to situational factors such as feedback cycles, and measurement of coherence and reliability in expert ju- ment is introduced as a baseline determinant of good judgmental performance. Issues concerned with the representation of elicited expert knowledge in kno- edge-based systems are evaluated and methods are described that have been shown to produce improvements in judgmental performance. Behavioral and mathematical ways of combining judgments from multiple experts are compared and contrasted. Finally, the issues developed in the preceding contributions are focused on current controversies in decision support. Expert judgment is utilized as a major input into decision analysis, forecasting with statistical models, and expert s- tems.
Download or read book Dissertation Abstracts International written by and published by . This book was released on 1994 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditor Judgment Under Uncertainty written by and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book American Doctoral Dissertations written by and published by . This book was released on 1993 with total page 704 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 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 Confirmation Bias on Auditors Risk Assessments written by Cory A. Cassell and published by . This book was released on 2019 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experimental research in accounting provides extensive evidence that auditors' judgments are negatively affected by the use of heuristics. However, there is little research investigating whether the negative effects of using heuristics manifest in practice and survive the quality control processes that regulators and audit firms have in place to mitigate them. In this study, we focus on one such heuristic - confirmation bias - and identify a setting where the effects of auditors' use of this heuristic are likely to manifest. Our findings indicate that auditors with previous experience auditing a client with a history of low risk followed by an increase in risk do not adequately respond to the higher level of risk. Consistent with expectations, we find that this effect is mitigated when the risk increase is likely to violate auditors' reasonableness constraint, when the client is highly visible or has high institutional holdings, and when the auditor is a Big Four or industry specialist auditor. Our study complements prior experimental research by providing evidence that auditors' use of heuristics has an economically significant effect on auditor judgments in practice and that the negative effects of using heuristics can survive the quality control processes that audit firms have in place.
Download or read book The Effects of Audit Methodology and Audit Experience on the Development of Auditors Knowledge of the Client s Business electronic Resource written by Berberich, Gregory and published by University of Waterloo. This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Heuristic Reasoning in Management Accounting written by Jörn Sebastian Basel and published by BoD – Books on Demand. This book was released on 2012 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Heuristics are short-cuts and deliberately ignore information, for instance through examining fewer cues or integrating less information. However, this collides with a view on management accountants and controllers as rational agents which seems to suggest that all available information should be considered. As their role as information supplier is often accompanied with the task to assist managers in their judgment and decision making, they have huge influence on these processes. Therefore, it is of high relevance to know if, how, and which heuristics management accountants and controllers use. Furthermore, we need to know which individual and situational factors influence their usage of heuristics. With a series of five empirical studies, applying a mixed-methods research design, the author sheds light to these research questions and addresses some central claims of the potential biases but also the stunning benefits of relying on heuristic reasoning. Central to his discussion are dual-process-approaches which are debated in cognitive psychology. Scholars of these approaches claim that we should distinguish between two distinct processes (or systems) of the human mind. Following this interpretation, heuristics are processes which are described as intuitive, automatic, fast, and unconscious. They are routinized cognitive processes which are based on experience in certain social environments and thus often exhibit ecological rationality. Overall, this book picks up an up-to-date topic in behavioural accounting research, which not only is of relevance for researchers but as well for practitioners.
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 Using Decision Aids to Improve Auditors Conditional Probability Judgments written by Sarah E. Bonner and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research provides evidence that auditors encounter difficulty in applying the error frequencies they have experienced to judgments of the probability that an audit objective is violated given a particular transaction cycle. This may occur because of a mismatch between the organization of the judgment task (in which transaction cycle is the more important organizing dimension) and the organization of auditors' knowledge (in which audit objective is the more important organizing dimension). We performed an experiment to test the effectiveness of two decision aids in counteracting this difficulty: (1) a checklist-style decision aid which facilitates knowledge retrieval and (2) a decomposition-and-mechanical-aggregation decision aid which facilitates both knowledge retrieval and aggregation. Our results indicate that the checklist aid improved the degree to which auditors' judgments reflected their experienced frequencies to a small degree, but that the mechanical-aggregation aid improved auditors' judgments to a great extent, completely counteracting the effect of the mismatch in dimension importance between task organization and knowledge organization.
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 . This book was released on 2015 with total page 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. Contents Belief Revision and Information Order Effects Professional Skepticism Empirical Analysis Target Groups Researchers and students in the fields of accounting and auditing Practitioners in these areas The Author Dr. Kristina Yankova completed her doctoral studies under the guidance of Prof. Dr. Annette Köhler at the Chair of Accounting and Auditing at the Mercator School of Management, University of Duisburg-Essen.
