How Insights from the 'New' JDM Research Can Improve Auditor Judgment: Fundamental Research Questions and Methodological Advice

Posted: 26 Sep 2015 Last revised: 17 Nov 2015

Emily E. Griffith

University of Wisconsin - Madison

Kathryn Kadous

Emory University - Goizueta Business School

Donald Young

Georgia Institute of Technology - Scheller College of Business

Date Written: November 12, 2015

Abstract

We examine recent developments in judgment and decision making (JDM) research to provide insight into how two big ideas in this area can be leveraged as overlapping frameworks to examine and improve auditor judgment. The ideas are (1) that human thinking and reasoning can be characterized by a dual-process model and (2) that conscious and nonconscious goals drive cognition. Despite that these ideas are well established in the broader JDM literature and have great promise for improving auditor judgment, we observe minimal use of them in the audit JDM literature. Thus, we briefly outline these ideas, and we develop fundamental, high-level research questions related to audit JDM research that are based on these ideas. Finally, we provide guidance for designing and evaluating experiments that effectively use these frameworks, whether in auditing or other rich decision making contexts. The frameworks can help researchers improve audit quality by enhancing our understanding of auditors’ judgment processes and the factors that influence them, by allowing for new ways of thinking about how to improve auditor judgment, and by suggesting new interventions for improving auditor judgment.

Keywords: Audit quality, auditor judgment, judgment and decision making

JEL Classification: G10, M40, M41, M42

Suggested Citation

Griffith, Emily E. and Kadous, Kathryn and Young, Donald, How Insights from the 'New' JDM Research Can Improve Auditor Judgment: Fundamental Research Questions and Methodological Advice (November 12, 2015). Auditing: A Journal of Practice & Theory, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2665416 or http://dx.doi.org/10.2139/ssrn.2665416

Emily Elaine Griffith (Contact Author)

University of Wisconsin - Madison ( email )

School of Business
975 University Avenue
Madison, WI 53706
United States

Kathryn Kadous

Emory University - Goizueta Business School ( email )

1300 Clifton Road
Atlanta, GA 30322-2722
United States
404-727-4967 (Phone)

Donald Young

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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