Accountability and auditors' materiality judgments: The effects of differential pressure strength on conservatism, variability, and effort

Accounting, Organizations and Society

Volumn 31, Issue 4-5, 2006, Pages 373-390

  DeZoort, Todd ^a   Harrison, Paul ^b   Taylor, Mark ^c  

^a UNIVERSITY OF ALABAMA   (United States)

^b WICHITA STATE UNIVERSITY   (United States)

^c CREIGHTON UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33744933728     PISSN: 03613682     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.aos.2005.09.001     Document Type: Article

References (49)

1. Agoglia C., Kida T., and Hanno D. The effects of alternative justification memos on the judgments of audit reviewees and reviewers. Journal of Accounting Research 41 (2003) 33-46
2. Arkes H., Dawes R., and Christensen C. Factors influencing the use of a decision rule in a probabilistic task. Organizational Behavior and Human Decision Processes 37 (1986) 93-110
3. Asare S., Trompeter G., and Wright A. The effect of accountability and time budgets on auditors' testing strategies. Contemporary Accounting Research 17 (1996) 539-560
4. Ashton R. Pressure and performance in accounting decision settings: paradoxical effects of incentives, feedback, and justification. Journal of Accounting Research 28 (1990) 148-180
5. Ashton R. Effects of justification and a mechanical aid on judgment performance. Organizational Behavior and Human Decision Processes 52 (1992) 292-306
6. Big Five Audit Materiality Task Force (1998). Materiality in a financial statement audit: considering qualitative factors when evaluating audit findings. Arthur Andersen, Deloitte & Touche, Ernst & Young, KPMG, PricewaterhouseCoopers.
7. Boatsman J., Moeckel C., and Pei B. The effects of decision consequences on auditors' reliance on decision aids in audit planning. Organizational Behavior and Human Decision Processes 71 2 (1997) 211-247
8. Boatsman J., and Robertson J. Policy-capturing on selected materiality judgments. The Accounting Review 49 (1974) 342-352
9. Braun K. The disposition of audit-detected misstatements: an examination of risk and reward factors and aggregation effects. Contemporary Accounting Research 18 1 (2001) 71-99
10. Buchman T., Tetlock P., and Reed R. Accountability and auditors' judgment about contingent events. Journal of Business Finance and Accounting 23 3 (1996) 379-398
11. Carpenter B., and Dirsmith M. Early debt extinguishment transactions and auditor materiality judgments: a bounded rationality perspective. Accounting, Organizations and Society 17 8 (1992) 709-740
12. Carver C. A cybernetic model of self-attention processes. Journal of Personality and Social Psychology 37 8 (1979) 1251-1281
13. Chang C., Ho J., and Liao W. The effects of justification, task complexity and experience/training on problem-solving performance. Behavioral Research in Accounting 9 (1997) 98-116
14. Cloyd C. Performance in tax research tasks: the joint effects of knowledge and accountability. The Accounting Review 72 (1997) 111-132
15. Cuccia A., Hackenbrack D., and Nelson M. The ability of professional standards to mitigate aggressive reporting. The Accounting Review 70 (1995) 227-248
16. DeZoort T., and Lord A. A review and synthesis of pressure effects research in accounting. Journal of Accounting Literature 16 (1997) 28-85
17. Financial Accounting Standards Board (FASB) (1980). Qualitative characteristics of accounting information (Statement of Financial Accounting Concept No. 2). Norwalk, CT: Financial Accounting Standards Board.
18. Friedberg A., Strawser J., and Cassidy J. Factors affecting materiality judgments: a comparison of big eight accounting firms' materiality views with the results of empirical research. Advances in Accounting 7 (1989) 187-201
19. Georgiades G. Miller audit procedures: electronic workpapers and reference guide (1996), Harcourt Brace, San Diego, CA
20. Gibbins M., and Newton J. An empirical exploration of complex accountability in public accounting. Journal of Accounting Research 32 (1994) 165-186
21. Gibbins M., Salterio S., and Webb A. Evidence about auditor-client management negotiations concerning client's financial reporting. Journal of Accounting Research 39 (2001) 535-563
22. Glover S. The influence of time pressure and accountability on auditors' processing of nondiagnostic information. Journal of Accounting Research 35 (1997) 213-226
23. Hackenbrack K., and Nelson M. Auditors' incentives and their applications of financial accounting standards. The Accounting Review 71 (1996) 43-59
24. Hoffman V., and Patton J. Accountability, the dilution effect, and conservatism in auditors' fraud judgments. Journal of Accounting Research 35 (1997) 227-238
25. Icerman R., and Hillison W. Disposition of audit-detected errors: some evidence on evaluative materiality. Auditing: A Journal of Practice & Theory 10 (1991) 22-34
26. International Accounting Standards Board (IASB) (2001). Framework for the preparation and presentation of financial statements. London, UK: IASB.
27. Johnson V., and Kaplan S. Experimental evidence on the effects of accountability on auditor judgments. Auditing: A Journal of Practice & Theory 10 (1991) 96-107
28. Kachelmeier S., and Messier W. An investigation of the influence of a nonstatistical decision aid on auditor sample size decisions. The Accounting Review 65 (1990) 209-226
29. Kennedy J. Debiasing audit judgments with accountability: a framework and experimental results. Journal of Accounting Research 31 (1993) 231-245
30. Koonce L., Anderson U., and Marchant G. Justification of decisions in auditing. Journal of Accounting Research 33 (1995) 369-384
31. Krogstad J., Ettenson R., and Shanteau J. Context and experience in auditors' materiality judgments. Auditing: A Journal of Practice & Theory 4 (1984) 54-74
32. Lerner J., and Tetlock P. Accounting for the effects of accountability. Psychological Bulletin 125 2 (1999) 255-275
33. Libby R., and Kinney W. Does mandated audit communication reduce opportunistic corrections to manage earnings to forecasts?. The Accounting Review 75 4 (2000) 383-404
34. Lord A. Pressure: a methodological consideration for behavioral research in accounting. Auditing: A Journal of Practice & Theory 11 (1992) 89-108
35. Lowe D.J., Reckers P., and Whitecotton S. The effects of decision-aid use and reliability on jurors' evaluations of auditor liability. The Accounting Review 77 1 (2002) 185-202
36. Messier W. The effect of experience and firm type on materiality/disclosure judgments. Journal of Accounting Research 21 (1983) 611-618
37. Messier W. Research in and development of audit decision aids. In: Ashton R.H., and Ashton A.H. (Eds). Judgment and decision-making research in accounting and auditing (1995), Cambridge University Press, Cambridge, UK
38. Messier, W., Martinov, N., & Eilifsen, A. (2004). A review and integration of empirical research on materiality: two decades later. Working paper, Georgia State University.
39. National Institute of Statistics (NIST) (2002). Engineering Statistics Handbook. NIST/Sematech. www.itl.nist.gov/div898/handbook/index.htm.
40. Peecher M. The influence of auditors' justification processes on their decisions: a cognitive model and experimental evidence. Journal of Accounting Research 34 (1996) 125-140
41. Schlenker B. Personal responsibility: applications of the triangle model. Research in Organizational Behavior 19 (1997) 241-301
42. Schlenker B., and Leary M. Social anxiety and self-presentation: a conceptualization and model. Psychological Bulletin 92 3 (1982) 641-669
43. Securities and Exchange Commission (SEC) (1999). Materiality. SEC Staff Accounting Bulletin No. 99. Washington, DC: Government Printing Office: SEC.
44. Tan H. Effects of expectations, prior involvement, and review awareness on memory for audit evidence and judgment. Journal of Accounting Research 33 (1995) 113-135
45. Tan H., and Kao A. Accountability effects on auditors' performance: the influence of knowledge, problem-solving ability and task complexity. Journal of Accounting Research 37 (1999) 209-223
46. Tetlock P. Accountability and complexity of thought. Journal of Personality and Social Psychology 45 1 (1983) 74-83
47. Tetlock P. The impact of accountability on judgment and choice: toward a social contingency model. Advances in Experimental Social Psychology 25 (1992) 331-376
48. Tuttle B., Coller M., and Plumlee D. The effect of misstatements on decisions of financial statement users: an experimental investigation of auditor materiality thresholds. Auditing: A Journal of Practice and Theory 21 (2002) 11-28
49. Wright A., and Wright S. An examination of factors affecting the decision to waive audit adjustments. Journal of Accounting, Auditing and Finance 12 (1997) 15-36