Halo Effect in Analytical Procedure: The Impact of Client’s Profile and Scope of Information

Utami, Intiyas; Kusuma, Indra Wijaya; Gudono,; Supriyadi, Supriyadi

doi:10.2139/ssrn.2267580

Cited by 7 publications

(12 citation statements)

References 50 publications

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“…These findings provide evidence that auditor judgment can be biased by the existence of a halo effect. Utami et al, (2014), the study also strengthened the research of Arel et al, (2005), which found that the halo effect phenomena occur between auditors. This is contrary to the expectations of Gramling et al, (2010), the findings do not provide evidence that knowledge of inherent risk factors creates halo effects that can affect the auditor's judgment.…”

Section: Irjmissupporting

confidence: 87%

Halo effect moderating: impact of professional skepticism on auditor performance

Septian¹,

Astika²

2019

irjmis

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The Public Accountant profession has a role in supporting a healthy and efficient economy and increasing transparency and quality of financial information. Good auditor performance is needed to provide transparent and quality financial information to all interested parties. Good auditor performance can be carried out if an auditor is able to maintain professional skepticism and other factors in carrying out audit assignments and is not affected by factors that can reduce professional skepticism, one of which is the occurrence of a halo effect in assessing the client's overall business risk. The research was conducted to provide empirical of the halo effect in moderating professional skepticism on the auditor performance at Public Accounting Firm (KAP) in Bali Province. The population in this research were all KAP auditors in Bali Province which registered in the Directory and published by Indonesian Institute of Certified Public Accountants (IAPI) in 2019. The sampling technique used purposive sampling with the auditor criteria who are actively working in KAP in Bali Province and has audit experience of at least one year and ever been a team leader in the audit at least once.

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Section: Irjmissupporting

confidence: 87%

Halo effect moderating: impact of professional skepticism on auditor performance

Septian¹,

Astika²

2019

irjmis

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“…One of internal factors that can affect auditors is bias that can cause a halo effect. A halo effect is defined as a tendency of evaluating of a subject influenced by generalization from one aspect of assessment that affects the whole aspect of the assessment (Utami, Kusuma, Gudono, & Supriyadi, 2014). Auditors tend to categorize the influencing things when they make decisions.…”

Section: Risk Preferencesmentioning

confidence: 99%

Fraud Risk Assessment: Experimental Study on the Alternative Fraud Model and Auditor Risk Preferences

Artati

Noviyanti²

2020

JRAK

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Fraud risk assessment is an important part of the audit process and one of the toughest challenges faced by auditors. In considering fraud risk assessment, fraud models and risk preferences can influence auditor’s decisions. This study uses a 2x2 between-subject experimental design with a total of 110 auditors of public accountant firms in Central Java as participants and produces 60 data ready for processing. Participants were formed into 4 groups with different treatments which the treatments consist of Diamond Fraud model with high and low risk preferences and Pentagon Fraud model with high and low risk preferences. The results show that the use of Pentagon Fraud model will result a more conservative fraud risk assessment. When auditors dare to take high risk action, the resulting fraud risk assessment will be low. In addition, the fraud model and risk preference variables show a significant influence on the performing of fraud risk assessment. There is an interaction between fraud models and auditors’ risk preferences in the performance of fraud risk assessment.

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“…In order to detect the involvement of the halo effect in performance evaluation, participants will be asked to answer the questions that have been tested by Utami et al (2014) adapted to the study: (1) participants asked to give agreement about the influence of granting a score of objective performance toward performance appraisals of evaluated administration office managers, (2) participants asked to assess the influence of granting score to the evaluated district manager on subjective evaluation.…”

Section: The Dependent and Independent Variablementioning

confidence: 99%

“…This argument is also confirmed by studies from Bechger et al (2010) which said that the halo effect will arise and affect the rating when the evaluator is faced two different measurements. Evaluators who have information or a general impression that precedes a more detailed assessment of performance will lead to an attitude of consistency to make the initial information as a benchmark to provide an evaluation of the subordinate (Utami et al 2014). Thus, the evaluator will provide an interpersonal assessment to subordinates based on the general impression that they received (Nisbett and Wilson 1977).…”

Section: Introductionmentioning

confidence: 99%

Halo Effect in Subjective Performance Evaluation Bias

Yustina

Gudono

2017

JEBAV

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Halo Effect in Analytical Procedure: The Impact of Client’s Profile and Scope of Information

Cited by 7 publications

References 50 publications

Halo effect moderating: impact of professional skepticism on auditor performance

Halo effect moderating: impact of professional skepticism on auditor performance

Fraud Risk Assessment: Experimental Study on the Alternative Fraud Model and Auditor Risk Preferences

Halo Effect in Subjective Performance Evaluation Bias

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