The effect of using diagnostic decision aids for analytical procedures on judges' liability judgments

Analytical procedures decision aids for generating explanations: Current state of theoretical development and implications of their use

“…Consistent with the need to trim the list to a manageable size, literature is cited regarding the expectations of U.S. judges that auditors will exhaustively search whatever explanations are finally included in a decision aid (Anderson et al, 1995). This study validates the results of Anderson et al (1997), to provide evidence on the utility of a decision aid to assist auditors with audit effectiveness in the application of analytical procedures.…”

“…Decision aids may be lengthy, such as the list of 15 explanations used in the analytical procedures decision aid in Anderson et al (1995Anderson et al ( , 1997. Circumstances of budgetary constraints and limited cognitive load may inhibit an auditor from fully using a lengthy list of explanations in a subsequent search of information during the audit.…”

Analytical procedures decision aids for generating explanations: Current state of theoretical development and implications of their use

“…Consistent with the need to trim the list to a manageable size, literature is cited regarding the expectations of U.S. judges that auditors will exhaustively search whatever explanations are finally included in a decision aid (Anderson et al, 1995). This study validates the results of Anderson et al (1997), to provide evidence on the utility of a decision aid to assist auditors with audit effectiveness in the application of analytical procedures.…”

“…Decision aids may be lengthy, such as the list of 15 explanations used in the analytical procedures decision aid in Anderson et al (1995Anderson et al ( , 1997. Circumstances of budgetary constraints and limited cognitive load may inhibit an auditor from fully using a lengthy list of explanations in a subsequent search of information during the audit.…”

Can artificial intelligence reduce the effect of independence conflicts on audit firm liability?

“…For example, different features may have different effects on perceived expertise/competence and perceived objectivity. Similarly, prior research considers the effect on litigation risk from the use (or nonuse) of additional information generated from audit decision aids (Anderson et al, 1995; Lowe et al, 2002). This research suggests that the manner in which humans can adjust the output of an AI system is one factor that may affect perceived objectivity and trust.…”

Auditors' Generation of Diagnostic Hypotheses in Response to a Superior's Suggestion: Interference Effects*

“…Previous studies have examined various issues related to interference effects; however, the authors are not aware of any studies that have examined such effects within a category. Some of the issues that have been investigated previously include the effect of the number of inherited items on auditors' probability assessments of the number of missing items (Rennie 1992), the effect of providing auditors with an incomplete problem representation on their retrieval of the correct problem representation (Bedard andBiggs 1991a, 1991b), and the effect of the order in which participants are instructed to think about items from alternative categories on their retrieval of additional items and on their probability assessments of items from alternative categories occurring (Moser 1989;Heiman 1990;Anderson et al 1992;Koonce 1992). The results of these studies are largely mixed.…”

Analytical procedures decision aids for generating explanations: Current state of theoretical development and implications of their use

“…Consistent with the need to trim the list to a manageable size, literature is cited regarding the expectations of U.S. judges that auditors will exhaustively search whatever explanations are finally included in a decision aid (Anderson et al, 1995). This study validates the results of Anderson et al (1997), to provide evidence on the utility of a decision aid to assist auditors with audit effectiveness in the application of analytical procedures.…”

“…Decision aids may be lengthy, such as the list of 15 explanations used in the analytical procedures decision aid in Anderson et al (1995Anderson et al ( , 1997. Circumstances of budgetary constraints and limited cognitive load may inhibit an auditor from fully using a lengthy list of explanations in a subsequent search of information during the audit.…”

Can artificial intelligence reduce the effect of independence conflicts on audit firm liability?

“…For example, different features may have different effects on perceived expertise/competence and perceived objectivity. Similarly, prior research considers the effect on litigation risk from the use (or nonuse) of additional information generated from audit decision aids (Anderson et al, 1995; Lowe et al, 2002). This research suggests that the manner in which humans can adjust the output of an AI system is one factor that may affect perceived objectivity and trust.…”

Auditors' Generation of Diagnostic Hypotheses in Response to a Superior's Suggestion: Interference Effects*

“…Previous studies have examined various issues related to interference effects; however, the authors are not aware of any studies that have examined such effects within a category. Some of the issues that have been investigated previously include the effect of the number of inherited items on auditors' probability assessments of the number of missing items (Rennie 1992), the effect of providing auditors with an incomplete problem representation on their retrieval of the correct problem representation (Bedard andBiggs 1991a, 1991b), and the effect of the order in which participants are instructed to think about items from alternative categories on their retrieval of additional items and on their probability assessments of items from alternative categories occurring (Moser 1989;Heiman 1990;Anderson et al 1992;Koonce 1992). The results of these studies are largely mixed.…”

Analytical procedures decision aids for generating explanations: Current state of theoretical development and implications of their use

“…Consistent with the need to trim the list to a manageable size, literature is cited regarding the expectations of U.S. judges that auditors will exhaustively search whatever explanations are finally included in a decision aid (Anderson et al, 1995). This study validates the results of Anderson et al (1997), to provide evidence on the utility of a decision aid to assist auditors with audit effectiveness in the application of analytical procedures.…”

“…Decision aids may be lengthy, such as the list of 15 explanations used in the analytical procedures decision aid in Anderson et al (1995Anderson et al ( , 1997. Circumstances of budgetary constraints and limited cognitive load may inhibit an auditor from fully using a lengthy list of explanations in a subsequent search of information during the audit.…”

Can artificial intelligence reduce the effect of independence conflicts on audit firm liability?

“…For example, different features may have different effects on perceived expertise/competence and perceived objectivity. Similarly, prior research considers the effect on litigation risk from the use (or nonuse) of additional information generated from audit decision aids (Anderson et al, 1995; Lowe et al, 2002). This research suggests that the manner in which humans can adjust the output of an AI system is one factor that may affect perceived objectivity and trust.…”

Auditors' Generation of Diagnostic Hypotheses in Response to a Superior's Suggestion: Interference Effects*

“…Previous studies have examined various issues related to interference effects; however, the authors are not aware of any studies that have examined such effects within a category. Some of the issues that have been investigated previously include the effect of the number of inherited items on auditors' probability assessments of the number of missing items (Rennie 1992), the effect of providing auditors with an incomplete problem representation on their retrieval of the correct problem representation (Bedard andBiggs 1991a, 1991b), and the effect of the order in which participants are instructed to think about items from alternative categories on their retrieval of additional items and on their probability assessments of items from alternative categories occurring (Moser 1989;Heiman 1990;Anderson et al 1992;Koonce 1992). The results of these studies are largely mixed.…”