Framing Effect in Tax Auditor Judgment (A Phenomenology Study)

Abstract

The purpose of this study is to determine meaning of experience by tax auditors on the framing effect in audit judgment and to find out environment and situations that support this meaning. With purposive sampling, the study used three main informants and one supporting informant. The research data analysis technique uses Interpretative Phenomenological Analysis. Three framing perspectives are founded in this research, namely: framing of actions, framing of contingencies, and framing of outcomes. Five experiences of tax auditors that most often arise in those three perspectives are: implementation of fieldwork standard, adequacy of tax laws and regulations, adequacy of competent evidence, tax revenue targets, and audit completion targets. Each tax auditors have specific emphasis on their own experiences. Negative framing effect can lead auditors to inappropriate audit judgment and reduces the audit quality. Tax auditors should have more knowledge sharing activities to mitigate the risk of negative framing.