The relation of judgment, personal involvement, and experience in the audit of bank loans

Article Abstract:

A study was conducted examining the loan evaluation judgment of auditors as it is affected by these auditors' participation in sequential audits and by their experience in the audit environment. It was proposed that the interaction between personal involvement and experience influence the auditor's judgement on loan evaluations such that inexperienced auditors will make better loan decisions than the more experienced auditors in cases when the degree of personal involvement is high. The quality of judgments of experienced and inexperienced auditors is not likely to differ significantly in cases when the level of personal involvement is low. The findings of an experiment involving 41 auditors confirmed a significant interaction between experience, personal involvement and loan evaluation judgment.

Accounting and auditing, Judgment, Judgment (Psychology), Bank loans, Experience, Participation

---

A model of auditors' preliminary evaluations of internal control from audit data

Article Abstract:

Portions of working papers from one public accounting firm's audits were obtained and examined. The working papers included information documented from the preliminary assessment of internal control over the accounts receivable-sales section. Working paper data were provided as input, and discriminant analysis was employed to build a descriptive model of the preliminary evaluation judgments made by the auditors. The model predicted correctly about 80 percent of the individual auditor judgments, which is substantially more accurate than a chance model. The significance of the absence or presence of certain control activities on the auditors' evaluations was investigated from the model.

Analysis, Accounting firms, Accounting services, Control, Internal auditing

---

Anchoring in the judgmental evaluation of audit samples

Article Abstract:

The results of two experiments are reported; the experiments were designed to determine the anchor used by experienced auditors to evaluate a compliance test sample and a substantive test of details sample. Results indicate that there is a form of anchoring behavior in the judgmental evaluation of audit sample. Experienced auditors make assessments of risk by starting at a low level of risk of .05 or .10. In the substantive test of details task, the allowable risk does bias the risk assessment.

Decision-making, Decision making, United States, Statistics, Financial research

Similar abstracts:

• Abstracts: Strategic awareness, personal commitment and the process of planning in the small business. Planners' perceptions of the strategic management process
• Abstracts: The role of behavioral formality and informality in the enactment of bureaucratic versus organic organizations
• Abstracts: The Japanese industrial relations system. Experiences with office automation: some lessons and recommendations
• Abstracts: Industrial relations in Norway: past, present and future. International dimensions of managing technology. Virtually borderless: an examination of culture in virtual teaming
• Abstracts: Decentralization, strategy, and effectiveness of strategic business units in multibusiness organizations. part 2

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.