Root Cause Analysis Research Framework Mapping Auditing Judgment and Decision Making Research to Root Cause Analysis of Auditing Deficiencies in Practice – A Way Forward

44 Pages Posted: 27 Aug 2021 Last revised: 12 Jan 2022

Date Written: January 9, 2022

Abstract

Firms are required to establish systems around identifying and remediating root causes of auditing deficiencies (IAASB 2020; PCAOB 2019; SOX 2002). Since most audit firm personnel involved in RCA are not trained in the scientific investigation of auditors’ judgments and decisions, the objective of our study is to provide a theoretical framework to facilitate doing so and to identify important areas of future research that can inform root cause analysis efforts in practice. The insights derived from our Root Cause Analysis Research Framework allow auditing JDM researchers to quickly understand how their past and future research may inform RCA efforts in practice. Moreover, tethering the Framework to the Heuristic-Systematic Model (Chaiken 1980) narrows the focus of root cause investigations and increases the likelihood that researchers identify the correct causes and ultimately, increases the likelihood that the choice of a remediation strategy (e.g., a capacity increasing vs motivating strategy) will be effective.

Keywords: Heuristic Systematic Model; Thoughtfulness Heuristic; auditing deficiencies; overconfidence; motivation; capacity; auditors' judgment and decision making

Suggested Citation

Nolder, Christine J. and Sunderland, Daniel, Root Cause Analysis Research Framework Mapping Auditing Judgment and Decision Making Research to Root Cause Analysis of Auditing Deficiencies in Practice – A Way Forward (January 9, 2022). Available at SSRN: https://ssrn.com/abstract=3911302 or http://dx.doi.org/10.2139/ssrn.3911302

Christine J. Nolder (Contact Author)

Suffolk University ( email )

Boston, MA 02108
United States

Daniel Sunderland

Northeastern University ( email )

220 B RP
Boston, MA 02115
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
136
Abstract Views
387
rank
296,839
PlumX Metrics