Evidence, memory, and causal order in a complex audit decision task.

Ricchiute, David N.

doi:10.1037/1076-898x.4.1.3

Cited by 8 publications

(3 citation statements)

References 8 publications

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“…Memory often is distorted in a top-down fashion in the direction of predispositions existing at the time of retrieval. The relevant predisposition in many consumer contexts is a prior judgment (see Arkes and Harkness 1980;Ricchiute 1998). Insofar as memory is distorted in the direction of a prior judgment, confidence in the judgment should increase because supportive information will appear more plentiful and consistent than is truly the case.…”

Section: Distorted Memorymentioning

confidence: 99%

Knowledge Calibration: What Consumers Know and What They Think They Know

2000

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Consumer knowledge is seldom complete or errorless. Therefore, the self-assessed validity of knowledge and consequent knowledge calibration (i.e., the correspondence between self-assessed and actual validity) is an important issue for the study of consumer decision making. In this article we describe methods and models used in calibration research. We then review a wide variety of empirical results indicating that high levels of calibration are achieved rarely, moderate levels that include some degree of systematic bias are the norm, and confidence and accuracy are sometimes completely uncorrelated. Finally, we examine the explanations of miscalibration and offer suggestions for future research.

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Section: Distorted Memorymentioning

confidence: 99%

Knowledge Calibration: What Consumers Know and What They Think They Know

2000

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“…Ricchiute (1998Ricchiute ( , 1999, also in a going concern setting, finds that the judgments of more experienced auditors are affected by whether the evidence received from less experienced auditors is documented in causal or noncausal order. Analogously, to the extent that recency impacts the judgments and documentation of staff auditors such as our participants, its impact may be impounded in the ultimate judgments and choices of senior auditors.…”

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confidence: 95%

Eliminating recency with self‐review: the case of auditors' ‘going concern’ judgments

Ashton¹,

Kennedy²

2002

Behavioral Decision Making

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This paper examines the use of self-review to debias recency. Recency is found in the 'going concern' judgments of staff auditors, but is successfully eliminated by the auditor's use of a simple self-review technique that would be extremely easy to implement in audit practice. Auditors who self-review are also less inclined to make audit report choices that are inconsistent with their going concern judgments. These results are important because the judgments of staff auditors often determine the type and extent of documentation in audit workpapers and serve as preliminary inputs for senior auditors' judgments and choices. If staff auditors' judgments are affected by recency, the impact of this bias may be impounded in the ultimate judgments and choices of senior auditors. Since biased judgments can expose auditors to significant costs involving extended audit procedures, legal liability and diminished reputation, simple debiasing techniques that reduce this exposure are valuable. The paper also explores some future research needs and other important issues concerning judgment debiasing in applied professional settings.

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“…The profession has also responded to denigrations on audit quality. It emphasised that, by its nature, the inherent limitations of an audit make it impossible to eliminate the risk of audit failure (Ricchiute, 1998;IFAC, 2009). The effect of sound governance practices on the quality of financial reporting has recently received attention from researchers, particularly in the United States (McMullen, 1996;Beasley, 1996;Beasley, et al, 2000;Abbott, et al, 2000).…”

Section: Introductionmentioning

confidence: 99%

Audit Quality, Corporate Governance and Firm Characteristics in Nigeria

Adeyemi¹,

Fagbemi²

2010

IJBM

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The major corporate collapses and related frauds which occurred in Nigeria and around the world have raised doubts about the credibility of the operating and financial reporting practices of quoted companies in Nigeria. This stirred a number of professional and regulatory organizations to recommend reforms that will improve transparency in financial reporting and thereby increase audit quality and corporate governance practices. Although evidence of corporate governance practices and audit quality exists from developed economies, very scanty studies have been conducted in Nigeria where corporate governance is just evolving. Therefore, this study provides evidence on corporate governance, audit quality, and firm related attributes from a developing country, Nigeria. Logistic regression was used in investigating the questions that were raised in the study. Findings from the study show that ownership by non-executive director has the possibility of increasing the quality of auditing. Evidence also exist that size of the company and business leverage are important factors in audit quality for companies quoted on the Nigerian Stock Exchange. The study suggests that the composition of non-executive directors as members of the board should be sustained and improved upon in order to enhance audit quality.

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Evidence, memory, and causal order in a complex audit decision task.

Cited by 8 publications

References 8 publications

Knowledge Calibration: What Consumers Know and What They Think They Know

Knowledge Calibration: What Consumers Know and What They Think They Know

Eliminating recency with self‐review: the case of auditors' ‘going concern’ judgments

Audit Quality, Corporate Governance and Firm Characteristics in Nigeria

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