An investigation of the decision revision process : defense contract audit agency auditors determining the existence of defective pricing in fixed price contracts /
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1991.
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| Subjects: | |
| Online Access: | Link to OAKTrust copy |
| Abstract: | Accounting researchers have decried the lack of viable theories which may be used to explain the behavior of decision makers in revising beliefs when exposed to new information. Hogarth and Einhorn (1990) proposed a descriptive theory, the belief-adjustment model of decision revision, that may capture the actual behavior of the decision maker in the decision revision process. This theory was tested in the environment of Defense Contract Audit Agency Auditors assessing the likelihood of defective pricing. The goal of the research was to provide an improved understanding of the effect on the final defective pricing audit decision of the order of the arrival of information, the perceived strength of this information, possible auditor sensitivity to hypothesis confirming and hypothesis disconfirming evidence, and the response mode required. The theory was tested by developing cases utilizing evidence indicating that defective pricing did, or did not exist. Respondents analyzed the evidence for strength, and revised likelihood assessments as to the likelihood of the existence of defective pricing. Responses were analyzed by applying ANOVAs and repeated measures ANOVAs, as well as univariate and nonparametric tests, to the data gathered. It was found that the final decision at which the respondents arrived was subject to recency effects, that the order of the arrival of information affected the final likelihood final likelihood assessed, and that the auditors were extremely sensitive to hypothesis disconfirming evidence. The response mode required appeared to affect the final decision assessment of only inexperienced auditors. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Accounting." |
| Physical Description: | xi, 217 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |