A Review of Bias Research in Auditing: Opportunities for Integrating Experimental Psychology and Experimental Economics

70 Pages Posted: 28 Nov 2007 Last revised: 8 Feb 2010

See all articles by Christopher Koch

Christopher Koch

Johannes Gutenberg University Mainz - Gutenberg School of Economics and Management

Jens Wüstemann

University of Mannheim - Accounting and Taxation

Date Written: August 1, 2009

Abstract

The objective of this paper is to show opportunities for integrating psychological and economics research in auditing. For this purpose, auditing research that employs both the methodologies of experimental psychology and experimental economics is collectively reviewed. The review is structured along three fundamental research questions: (1) Are auditors prone to biases; (2) what are the consequences of biased judgment in auditing; and (3) do features of the audit environment interact with the biased judgment? While both the research approach of experimental psychology and experimental economics are employed for addressing these resesarch questions, both approaches differ in their focus and their implementation. This review highlights these differences, outlines the main findings and identifies future research opportunities.

Keywords: Bias, Heuristics, behavioral research, experimental economics, auditing, auditor, judgment, decision-making

JEL Classification: C9,0 M49

Suggested Citation

Koch, Christopher and Wüstemann, Jens, A Review of Bias Research in Auditing: Opportunities for Integrating Experimental Psychology and Experimental Economics (August 1, 2009). Available at SSRN: https://ssrn.com/abstract=1032961 or http://dx.doi.org/10.2139/ssrn.1032961

Christopher Koch (Contact Author)

Johannes Gutenberg University Mainz - Gutenberg School of Economics and Management ( email )

Mainz
Germany
+49 (6131) 3929990 (Phone)

HOME PAGE: http://https://www.cg.bwl.uni-mainz.de/

Jens Wüstemann

University of Mannheim - Accounting and Taxation ( email )

Mannheim, 68131
Germany

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