An examination of order effects in auditors’ inherent risk assessments
This study examines the occurrence of order effects in auditors’ inherent risk assessments, a task not previously examined. Using a case study administered to 70 auditors, this study found that auditors’ judgments were not influenced by the order in which audit evidence was evaluated. Rather, the results suggest that judgments of inherent risk may be biased towards conservatism. This may not be surprising given the negative consequences associated with failing to adequately plan an audit. This may cause auditors to act cautiously and thus mitigate recency effects.
Document Type: Original Article
Affiliations: 1: School of Accounting, Edith Cowan University, Churchlands, Western Australia 6018, Australia, 2: Department of Accounting and Finance, The University of Western Australia, Nedlands, Western Australia 6907, Australia
Publication date: 2000-07-01