Are Auditors Biased? The Effect Of Anchoring And Adjustment Heuristics On Auditors’ Judgment: Evidence From Auditors In Surabaya

Krida, Ashari and Pontjoharyo, Wiyono (2024) Are Auditors Biased? The Effect Of Anchoring And Adjustment Heuristics On Auditors’ Judgment: Evidence From Auditors In Surabaya. Journal of Accounting Research, Organization and Economics, 7 (1). ISSN 2621-1041 (Submitted)

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Abstract

Problems – Audit task is a complex task in which professional judgment is needed. The judgment then used to determine the type and scope of the information gathered, time and method of gathering the information, and the implications of the information gathered. Thus, audit judgment is becoming one of the crucial components of auditors when formulating their opinion. Auditors, in the judgment making process are prone to heuristics and biases which can lead to systematic error of their judgment. Objective – The purpose of this study is to illustrate one of the crucial factors that affect auditors in making their judgment which can lead to systematic error. Design/methodology/approach – This research is an experimental study which analyze 100 auditors in Surabaya. Findings – The result indicates that is evident that anchoring and adjustment heuristic exist and affect auditors’ judgment. The findings also indicates that experience influence auditors’ judgment whereas gender does not have such effect on auditors’ judgment. However, experience and gender can moderate the effect of anchoring and adjustment heuristic on auditors’ judgment. Contributions –This study is conducted to minimize the existence of bias and heuristics in auditors’ judgment. We can see that experience plays a crucial role to minimize the existence of anchoring and adjustment heuristics.

Item Type:	Article
Uncontrolled Keywords:	Audit judgment, Heuristics and biases, Anchoring and adjustment, Experience, Gender
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	Wiyono Pontjoharyo 3123
Date Deposited:	27 Oct 2023 02:06
Last Modified:	10 Jan 2024 07:39
URI:	http://repository.ubaya.ac.id/id/eprint/45191

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