Not just the facts: the effect of irrelevant information on internal auditor judgment

Abstract

Purpose This paper aims to examine how introducing irrelevant information into a risk decision scenario leads to less skeptical internal auditor assessments. Design/methodology/approach This paper conducted an internet-based experiment with 157 internal auditors manipulating information relevance. The experiment controlled for individual differences in trait skepticism, perceived information relevance and Chief Information Officer (CIO) warmth. Findings Internal auditors exhibit decreased skepticism when irrelevant information contradicts preconceived stereotypes of management, consistent with the dilution effect. When the CIO is described as gregarious, counter to common stereotypes, internal auditors assess risk as less severe compared to when the CIO is described as introverted or when no personality information is provided. Originality/value This paper provides insight as to when internal auditor judgment may be compromised.