Risk assessment judgments of auditors and bank lenders: a comparative analysis of conformance to Bayes' theorem
Article Abstract:
A study comparing the risk assessment judgments and risk-related perceptions of auditors and bank lenders was conducted. It was hypothesized that the risk assessment behavior of auditors was more consistent with the Bayesian theorem than that of bank lenders. The study involved 79 auditors and 85 lenders who were asked to answer survey questions pertaining to their perceptions of the work environment, solve a generic evidence integration problem and perform an experimental task by evaluating hypothetical cases of prospective clients. Findings lent support to the study's hypothesis as far as the results of the experimental task was concerned. Auditors and bankers differed in their Bayesian judgements of risk when it was work-related but showed similarity in judgement when it involved generic tasks.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1992
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Auditors and base rates revisited
Article Abstract:
Results from five experiments suggest that auditors lack an innate or acquired ability to integrate case-specific evidence and base rates any more normatively than other population subgroups. Auditors were shown in fact to integrate the base rates and case-specific evidence less normatively that did student population subgroups. It is suggested that earlier research by Joyce and Biddle was affected by the way in which the experimental problem was framed, and that this framed the results of that research more than qualities of auditors or the auditing context.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1987
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The use of accounting information in bank lending decisions
Article Abstract:
Research examines the effects of differing accounting data on the sequential loan decisions of experienced loan officers. The results indicate that even though loan officers reach a high level of confidence early in the lending review, when accounting information about the borrower is altered lending officers adjust their confidence in the expected directions.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1989
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