An experimental investigation of approaches to audit decision making: An evaluation using systems-mediated mental models

• 成果类型: Article
• 署名作者: Choy, AK; King, RR
• 署名单位: University of Alberta; University of Washington; University of Washington Seattle
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• 发表日期: 2005
• 页码: 311-350
• 关键词: illusory inferences; QUALITY; REGIMES

摘要

The objective of this research is to articulate a decision-making foundation for the systems audit approach. Under this audit approach, the auditor first gains an understanding of the auditee's economic environment, strategy, and business processes and then forms expectations about its performance and financial reporting. Proponents of this audit approach argue that decision making is enhanced because the knowledge of the system allows the auditor to focus on the most important risks. However, there has not been an explicit framework to explain how systems knowledge can enhance decision making. To provide such a framework, we combine mental model theory with general systems theory to produce a hypothesis we refer to as a systems-mediated mental model hypothesis. We test this hypothesis using experimental economics methods. We find that (1) subjects make systematic errors under the setting without an organizing framework provided by the systems information, and (2) the presence of an organizing framework results in lower reporting errors. Importantly, the organizing framework significantly enhances decision making in the settings where the environment changed. Establishing a decision-making foundation for systems audits can provide an important building block that, in part, can contribute to the development of a more effective and efficient audit technology - an important objective now when audits are facing a credibility crisis.