Title: Auditor Decision Making Bias: Testing the Effect of Scope and Order of Information Presentation

Author: Niluh Made Dian Novita Handayani Narsa

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The phenomenon of the auditor's negligence in detecting material misstatements that impact on opinion errors into the background of this research. Before carrying out audit procedures, the auditor determines the level of company risk. To be able to determine the level of risk, relevant information is needed related to the company's condition. This information can be in the form of qualitative and quantitative information. Information provided in the field is various forms, one of which is a different skop. General information received causes the auditor to focus on the general picture of the company's condition. In addition to information scops, the order of information presentation must also be considered when making decisions. The effect of producing two other effects that can cause decision making bias. This study focuses on testing primation effects, because previous research shows that the effect of the review causes bias without testing the primation effect. This study uses an experimental method with a 2 × 2 design that was tested using the ANOVA test. The results showed the bias of decision making turned out to be caused by a scop and sequence of information. This shows, the bias decision making can be caused by the effects of premacy which as long as it is rarely tested.

Keywords: information scope, order information, audit risk

Sources: http://repository.unair.ac.id/97845/