The Effect of Experience on the Use of Irrelevant Evidence in Auditor Judgment

Posted: 25 Mar 1999

See all articles by Sandra Waller Shelton

Sandra Waller Shelton

DePaul University, College of Commerce-School of Accountancy

Abstract

Auditors encounter both relevant and irrelevant information during the performance of audit tasks. Prior studies have shown that the presence of irrelevant information weakens the impact of relevant information on auditors' judgments. Such studies, however, have not considered whether experience moderates the diluting effect of irrelevant information on auditors' judgments. This study reports the results of an experiment in which the effect of irrelevant information on the going-concern judgments of less experienced auditors -- audit seniors -- is compared to the effect of irrelevant information on the going-concern judgments of more experienced auditors -- audit managers and partners. The experiment re-affirms that irrelevant information does have a diluting effect on the judgments of audit seniors but provides new evidence that irrelevant information does not have a diluting effect on the judgments of audit managers and partners.

JEL Classification: M49

Suggested Citation

Waller Shelton, Sandra, The Effect of Experience on the Use of Irrelevant Evidence in Auditor Judgment. Available at SSRN: https://ssrn.com/abstract=157691

Sandra Waller Shelton (Contact Author)

DePaul University, College of Commerce-School of Accountancy ( email )

Chicago, IL 60604
United States
312-326-8098 (Phone)
312-362-6208 (Fax)

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