Effects of alternative sample space representations on the accuracy of auditors' uncertainty judgments

Article Abstract:

A focus on possible audit values or misstatement of book values is necessary to obtain an auditor's uncertainty judgment for an account. Such optional sample space representations are formally similar in that they vary by a known constant: book value. Psychological literature findings imply, however, that such a framing variable can alter auditors' processing of data when uncertainty judgments are obtained. An experiment is described in which the effects of alternative sample space representations on the accuracy of auditors' uncertainty assessments are measured. Results contrast with the psychological literature, in that substantial judgment accuracy differences were not found.

Analysis

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A behavioral study of accounting variables in performance-incentive contracts

Article Abstract:

Internal accounting can supply management with useful information on worker performance when there is a difference of opinion between employers and workers about the worker's input. When input cannot be used as a basis for incentive-pay contracts then output performance measures are used. Employers must consider what type of employee will be attracted by the performance-incentive contract and the effort they will put into the job. Researchers examined internal accounting variables in performance-incentive contracts by interacting subjects as employers and workers during a series of contracting periods.

Accounting, Human resource planning, Human resource management, Contracts, Management research, Performance contracts

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Auditors' causal judgments: effects of forward versus backward inference on information processing

Article Abstract:

Philosophical and psychological literature on causality is reviewed and new research on auditors' causal judgments and their associated information processing is described. The experiments observed the relationship between the direction of inference and the type of information about a causal relation. It was found that multiplicity information was used for backward inferences and conditionality information was used for forward inferences.

Cognitive styles, Auditors

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