A comparison of auditor and non-auditor performance evaluations: Are accountants harsh critics?

Managerial Auditing Journal

Volumn 24, Issue 1, 2009, Pages 22-38

  Buchheit, Steve ^a   Pasewark, William R ^a   Strawser, Jerry R ^b  

^a TEXAS TECH UNIVERSITY   (United States)

^b TEXAS A AND M UNIVERSITY   (United States)

Author keywords

Accountants; Auditors; Bias; Performance appraisal

Indexed keywords

EID: 59949088119     PISSN: 02686902     EISSN: None     Source Type: Journal    
DOI: 10.1108/02686900910919884     Document Type: Article

References (38)

1. Alderman C., Dietrick J. (1982), "Auditors' perceptions of time budget pressures and premature signoffs: A replication and extension", Auditing: A Journal of Practice & Theory, Vol. 1, No. 2, pp. 54-68.
2. Anderson J.C., Jennings M.M., Lowe D.J., Reckers P.M.J. (1997), "The mitigation of hindsight bias in judges' evaluation of auditor decisions", Auditing: A Journal of Practice & Theory, Vol. 16, No. 2, pp. 20-40.
3. Baron J., Hershey J. (1988), "Outcome bias in decision evaluation", Journal of Personality and Social Psychology, Vol. 54, No. 4, pp. 569-79.
4. Brown C., Solomon I. (1987), "Effects of outcome information on evaluations of managerial decisions", The Accounting Review, Vol. 62, No. 3, pp. 564-77.
5. Camerer C., Loewenstein G., Weber M. (1989), "The course of knowledge in economic settings: An experimental analysis", Journal of Political Economy, Vol. 97, No. 5, pp. 1232-54.
6. Christensen-Szalanski J.J.J., Willham C.F. (1991), "The hindsight bias: A meta-analysis", Organizational Behavior and Human Decision Processes, Vol. 48, No. 1, pp. 47-69.
7. Clarkson P., Emby C., Watt V. (2002), "Debiasing the outcome effect: The role of instructions in an audit litigation setting", Auditing: A Journal of Practice & Theory, Vol. 21, No. 2, pp. 7-20.
8. Coram P., Ng J., Woodliff D.R. (2004), "The effect of risk of misstatement on the propensity to commit reduced audit quality acts under time budget pressure", Auditing: A Journal of Practice & Theory, Vol. 23, No. 2, pp. 159-68.
9. Emby C., Gelardi A., Lowe D. (2002), "A research note on the influence of outcome knowledge on audit partners' judgments", Behavioral Research in Accounting, Vol. 14, pp. 87-103.
10. Fischhoff B. (1975), "Hindsight ≠ Foresight: The effect of outcome knowledge on judgment under uncertainty", Journal of Experimental Psychology: Human Perception and Performance, Vol. 1, pp. 288-99.
11. Frederickson J., Peffer S., Pratt J. (1999), "Performance evaluation judgments: Effects of prior experience under different performance evaluation schemes and feedback frequencies", Journal of Accounting Research, Vol. 37 No. 1, pp. 151-65.
12. Glover S., Prawitt D., Wilks T. (2005), "Why do auditors over-rely on weak analytical procedures? The role of outcome and precision", Auditing: A Journal of Practice & Theory, Vol. 24, pp. 197-220 (supplement).
13. Harrell A., Wright A. (1990), "Empirical evidence on the validity and reliability of behaviorally anchored rating scales for auditors", Auditing: A Journal of Practice & Theory, Vol. 9 No. 3, pp. 134-49.
14. Holz E., Kirchler E. (2005), "Causal attribution and hindsight bias for economic developments", Journal of Applied Psychology, Vol. 90 No. 1, pp. 167-74.
15. Houston R.W. (1999), "The effects of fee pressure and client risk on audit seniors' time budget decisions", Auditing: A Journal of Practice & Theory, Vol. 18 No. 2, pp. 70-86.
16. Jennings M.M., Lowe D.J., Reckers P.M.J. (1998), "Causality as an influence on hindsight bias: An empirical evaluation of professional audit judgment", Journal of Accounting & Public Policy, Vol. 17 No. 2, pp. 143-68.
17. Johnson E.N., Kaplan S.E., Reckers P.M.J. (1998), "An examination of potential gender-based differences in audit managers' performance evaluation judgments", Behavioral Research in Accounting, Vol. 10, pp. 47-75.
18. Kaplan S.E., Reckers P.M.J. (1985), "An examination of auditor performance evaluation", The Accounting Review, Vol. 60 No. 3, pp. 477-88.
19. Kaplan S.E., Reckers P.M.J. (1993), "An examination of the effects of accountability tactics on performance evaluation judgments in public accounting", Behavioral Research in Accounting, Vol. 7, pp. 101-23.
20. Kelley T., Margheim L. (1987), "The effect of audit billing arrangement on underreporting of time and audit quality reduction acts", Advances in Accounting, Vol. 5, pp. 221-33.
21. Kennedy J. (1995), "Debiasing the curse of knowledge in audit judgment", The Accounting Review, Vol. 70 No. 2, pp. 249-74.
22. Lightner S., Leisenring J., Winters A. (1983), "Underreporting chargeable time: Its effects on client billing, future budget preparation, and scheduling", Journal of Accountancy, Vol. 155 No. 1, pp. 52-7.
23. Lipe M. (1993), "Analyzing the variance investigation decision: The effects of outcomes, mental accounting, and framing", The Accounting Review, Vol. 70 No. 4, pp. 748-64.
24. Louie T.A. (1999), "Decision makers' hindsight bias after receiving favorable and unfavorable feedback", Journal of Applied Psychology, Vol. 84 No. 1, pp. 29-38.
25. Lowe D.J., Reckers P.M.J. (1994), "The effects of hindsight bias on jurors' evaluations of auditor decisions", Decision Sciences, Vol. 25 No. 3, pp. 401-26.
26. McDaniel L.S. (1990), "The effects of time pressure and audit program structure on audit performance", Journal of Accounting Research, Vol. 28 No. 2, pp. 267-85.
27. McNair C.J. (1991), "Proper compromises: The management control dilemma in public accounting and its impact on auditor behavior", Accounting, Organizations and Society, Vol. 16 No. 7, pp. 635-53.
28. Margheim L., Pany K. (1986), "Quality control, premature signoff, and underreporting of time: Some empirical findings", Auditing: A Journal of Practice & Theory, Vol. 5 No. 1, pp. 50-63.
29. Marxen D.E. (1990), "A behavioral investigation of time budget preparation in a competitive audit environment", Accounting Horizons, Vol. 4 No. 2, pp. 47-57.
30. Mitchell T., Kalb L. (1981), "Effects of outcome knowledge and valence on supervisors' evaluations", Journal of Applied Psychology, Vol. 66 No. 5, pp. 604-12.
31. Ofir C., Mazursky D. (1997), "Does a surprising outcome reinforce or reverse the hindsight bias?", Organizational Behavior and Human Decision Processes, Vol. 69 No. 1, pp. 51-8.
32. Pohl R.F., Hell W. (1996), "No reduction in hindsight bias after complete information and repeated testing", Organizational Behavior and Human Decision Processes, Vol. 67 No. 1, pp. 49-58.
33. Ponemon L. (1992), "Auditor underreporting of time and moral reasoning: An experimental lab study", Contemporary Accounting Research, Vol. 9, pp. 171-89.
34. POB (2000), The Panel on Audit Effectiveness Report and Recommendations, Public Oversight Board of the SEC Practice Section, Stamford, CT.
35. Raghunathan B. (1991), "Premature signing-off of audit procedures: An analysis", Accounting Horizons, Vol. 5 No. 2, pp. 71-9.
36. Rhode J. (1978), The Independent Auditor's Work Environment: A Survey, American Institute of Certified Public Accountants, New York, NY.
37. Sharpe D., Adair J.G. (1993), "Reversibility of the hindsight bias: manipulation of experimental demands", Organizational Behavior and Human Decision Processes, Vol. 56 No. 2, pp. 233-45.
38. Wright A. (1980), "Performance appraisal of staff auditors", The CPA Journal, Vol. 50 No. 11, pp. 37-43.