Behavioural Aspects of Auditors' Evidence Evaluation

by Abou-Seada, Magda; Abdel-Kader, Magdy G.

• ISBN13: 9780754632214
• ISBN10: 0754632210
• Format: Hardcover
• Copyright: 2003-08-01
• Publisher: Ashgate Pub Ltd

Summary

Employing two research methodologies (a survey research and an experimental study) this book asks how auditors understand their own behaviour when evaluating evidence and compares the efficiency and effectiveness of the two alternative approaches ('belief revision' and 'open mind') in the audit process. The book concludes that the belief revision approach (though less favoured by UK auditors as an accurate account of their behaviour) would improve the efficiency of the audit process without affecting its effectiveness or outcomes.

Author Biography

Magda Abou-Seada is affiliated with Middlesex University.

Table of Contents

List of Tables	viii
List of Figures	ix
Preface	x
1 Introduction and Overview	1	(12)
Context for the Study	1	(1)
The Audit Process and Evidence Evaluation	1	(4)
The Belief Revision Process	5	(2)
Evidence Evaluation Approaches in the UK Auditing Standards	7	(2)
Aims of the Study	9	(1)
Research Questions	10	(1)
Structure of the Book	10	(3)
2 The Belief-Adjustment as a Model of the Belief Revision Approach	13	(20)
Introduction	13	(1)
The Contrast/Surprise Model and its Predictions	13	(2)
The Belief Adjustment Model and its Predictions	15	(4)
Advantages of the Belief Adjustment Model	19	(3)
The Validity of the Predictions of the Contrast/Surprise and Belief Adjustment Models	22	(9)
Conclusions	31	(2)
3 Factors Affecting Auditors' Belief Revisions	33	(16)
Introduction	33	(1)
Belief Formation	33	(5)
Confirmation Bias	38	(1)
Diagnostic Content of Evidence	39	(2)
Expertise	41	(3)
Professional Scepticism	44	(1)
Motivational Factors	45	(1)
Cognitive Factors	46	(1)
Conclusions	47	(2)
4 Empirical Research Design	49	(14)
Introduction	49	(1)
Aim of Empirical Study and Research Questions	49	(1)
Research Methodology	50	(10)
Conclusions	60	(3)
5 Results of Interviews: Auditors' Approaches in Evaluating Evidence	63	(10)
Introduction	63	(1)
The Evidence Evaluation Approach Followed by Auditors	63	(6)
The Evidence Evaluation Approach in Case of New vs. Continuing Clients	69	(2)
The Evidence Evaluation Approach in Case of Small vs. Large Clients	71	(1)
Conclusions	72	(1)
6 Results of Interviews: Factors Affecting Auditors' Evaluation of Evidence	73	(26)
Introduction	73	(1)
Formation of the Initial Belief	73	(11)
Expertise	84	(1)
Confirmation Bias	85	(4)
Professional Scepticism and Conservatism	89	(1)
Diagnostic Content of Evidence	90	(1)
Evidence Order	91	(2)
Evaluation Mode	93	(2)
Time and Cost	95	(1)
Conclusions	96	(3)
7 Results of Experiment	99	(22)
Introduction	99	(1)
Basis of Comparisons	99	(1)
Demographic Information About Participants	100	(1)
Method of Analysis	101	(1)
Differences Between the Open Mind and Belief Revision Approaches	102	(7)
Differences Between Evidence Evaluation Modes	109	(6)
Comparing Risk Assessment and the Initial Belief	115	(2)
Conclusions	117	(4)
8 Discussion and Conclusions	121	(20)
Introduction	121	(1)
Findings of the Empirical Study	121	(13)
Implications of the Findings of the Empirical Study	134	(4)
Areas for Future Research	138	(3)
Bibliography	141	(10)
Appendices	151	(14)
Index	165