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 auditor negligence in detecting material misstatements which have an impact on opinion errors is the background for this research. Before carrying out audit procedures, the auditor determines the company's risk level. To be able to determine the level of risk, relevant information regarding the condition of the company is needed. This information can be in the form of qualitative or quantitative information. The information provided in the field takes various forms, one of which is a different scope. The general information received causes the auditor to focus on the general picture of the company's condition. Apart from the scope of information, the order in which information is presented must also be considered when making decisions. The sequence effect produces two other effects that can lead to decision-making bias. This study focuses on testing the primacy effect, because previous research shows that the reviewer effect causes bias without testing the primacy effect. This research uses an experimental method with a 2x2 design which is tested using the anova test. The research results show that decision-making bias can be caused by the scope and sequence of information. This shows that decision-making bias can be caused by the presumption effect which is rarely tested.
Keywords: information scope, order information, audit risk
Sources: http://repository.unair.ac.id/97845/
