Implications of Seemingly Irrelevant Evidence in Audit Judgment

Hackenbrack, Karl

doi:10.2307/2491095

Cited by 152 publications

(95 citation statements)

References 7 publications

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“…Importantly, the current findings significantly agree with the previous study (FRC, 2014;Owens, 2012;Wuerges, 2011;Chui, 2010;PCAOB, 2008;ICAN, 2005;Wilks & Zimbelman, 2004;Knapp & Knapp, 2001;Hackenbrack, 1992) that found forensic accountants to have higher levels of task performance fraud risk assessment requirement than auditors.…”

Section: Discussionsupporting

confidence: 92%

Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment

Popoola¹,

Ahmad²,

Samsudin³

2014

IJBM

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The paper investigates the relationship between knowledge (KR) and mindset (MR) on task performance fraud risk assessment (TPFRA) of forensic accountant and auditor in the public sector environment. It also examines the claim that forensic accountants possess higher level of KR, MR and TPFRA than auditors. The study design is cross-sectional. Survey questionnaire is used. The 300 respondents are real professional people (i.e. auditors and accountants in the Nigerian public sector) as true representatives to enhance the generalisation of the outcomes. PLS-SEM and IBM SPSS Statistics 20.0 were used as the primary statistical analysis tools for the study. The results of the present study confirm the positive relationship of KR and MR on TPFRA. Specifically, the results revealed that forensic accountants have higher levels of KR, MR and TPFRA than auditors in the areas of fraud prevention/deterrent, detection and response. Because of the adoption of cross-sectional design in which data are collected at one point of time, there is no time to wait for different follow-up stages or interventions before data analysis. Researchers are encouraged to use longitudinal design to explore interactions between KR, MR and TPFRA. This empirical study has revealed the value of KR and MR (forensic accountant and auditor) as a significant capability requirement in the workplace. Since no nation is immune to fraud and as loss due to fraud is costly, the result of this research will improve the corporate governance and accountability practices among public sector accountants and auditors.

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Section: Discussionsupporting

confidence: 92%

Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment

Popoola¹,

Ahmad²,

Samsudin³

2014

IJBM

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“…Previous financial reporting research confirms this effect in audit settings (Hackenbrack 1992, Glover 1997, Bhattacharjee et al 2007). Tversky and Kahneman (1974) show that an anchoring effect exists even when the information is random and irrelevant to a decision.…”

Section: Theory and Hypothesesmentioning

confidence: 56%

Financial estimates against investors’ preferences: anchoring, denial and spillover effects

Arikan

2017

Accounting and Business Research

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This experimental study investigates how the characteristics of an estimate in a sensitivity disclosure and the level of threat it presents to investors' preferences interact to influence investors' risk judgments. Firstly, I predict and find that variation in an estimate affects not only investors' judgment on a related issue but also their future judgments on an unrelated issue. Secondly, I predict and find that investors are more sensitive to variations in an estimate when information contained in the estimate presents less threat to their preferred conclusions than when it presents greater threat. Finally, I predict and find that investors perceive more uncertainty regarding the association between the disclosed risk factor and the estimated financial reporting item in the estimate when the information presents greater threat.

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“…Auditors are generally poor assessors of fraud risk assessment (Joyce & Biddle, 1981;Hackenbrack, 1992;Knapp & Knapp, 2001). Hence, the pronouncement evokes reaction from some accounting researchers towards improving auditors' fraud risk assessment.…”

Section: Fraud Risk Assessmentmentioning

confidence: 99%

The Impact of Task Performance Fraud Risk Assessment on Forensic Skills and Mindsets: A Conceptual Model

et al. 2015

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Implications of Seemingly Irrelevant Evidence in Audit Judgment

Cited by 152 publications

References 7 publications

Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment

Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment

Financial estimates against investors’ preferences: anchoring, denial and spillover effects

The Impact of Task Performance Fraud Risk Assessment on Forensic Skills and Mindsets: A Conceptual Model

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