TY  - JOUR
AB  - Research in both psychology and accounting indicates that humans,
in making decisions, resort to using decision strategies known as
heuristics. One heuristic of particular interest in the field of
accounting is that of anchoring and adjustment. Empirical research has
shown that subjects will sometimes bias judgements towards the anchor
even in situations where the anchor is of little value or is irrelevant.
Explains that the presence of a primary or recency effect in the context
of the anchoring and adjustment heuristic may be the existence of an
“internal anchor”. Combining these theories, hypothesizes
that auditors would use their initial mindset as an anchor. A laboratory
experiment indicated that auditors did employ the anchoring and
adjustment heuristic; they did have a negative internal anchor; and the
inertia effect could be used to predict whether a primary or recency
effect would be present in a particular likelihood estimation. The
results gave strong support for the idea that auditors place
over‐reliance on negative information. However, the results indicated
that students did not have an internal anchor, did not employ the
anchoring and adjustment heuristic and that the inertia effect was not
useful in predicting whether a primary or recency effect would be
present in a particular likelihood estimation.
VL  - 8
IS  - 6
SN  - 0268-6902
DO  - 10.1108/02686909310042767
UR  - https://doi.org/10.1108/02686909310042767
AU  - Morris David E.
PY  - 1993
Y1  - 1993/01/01
TI  - Analysis of Auditors’ Perceptions and Over‐reliance on
Negative Information
T2  - Managerial Auditing Journal
PB  - MCB UP Ltd
Y2  - 2024/04/19
ER  -