| 2001): Auditors’ Belief Revision: Recency Effects of Contrary and Supporting Audit Evidence and Source Reliability (2005) | |||||||||||||||||
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| Abstract: Recent findings in auditing indicate that sequential processing of conflicting audit evidence can lead to possible non-normative responses. The objective of this research is to investigate the effects of conflicting audit evidence and source reliability on audit judgement during sequential processing. Eightyeight auditors from the Big 5 CPA firms in Fiji participated in the study. The results suggests that auditors only display significant differences in judgments when presentation order is reversed for conflicting audit evidence from a source with high reliability. Application of a weighted average model supports the notion that the reliability of source affects the weighting of conflicting audit evidence. Additional analysis shows that presentation order inhibits auditors from rationally weighing conflicting audit evidence with varying source reliability. The arithmetic weights computed using a linear model are likely to be useful in setting benchmarks for the validation of cue weights in expert systems and for policy decisions on formulation of audit practice statements. | |||||||||||||||||
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