Judgment and decision-making research in auditing

Abstract

This chapter has four interrelated objectives. One objective is to provide an overview and evaluation of the many studies published during the last 20 years in which experienced auditors formed judgments or made decisions while performing audit tasks. The second objective is to recommend issues for and approaches to future research. A third objective is to compare findings of the audit judgment/decision–making (J/DM) studies with nonaudit J/DM studies, thereby increasing nonaudit J/DM researchers' awareness of these audit studies. The fourth objective is to provide a common foundation for Chapter 7 by Libby on knowledge and memory in auditing and Chapter 8 by Messier on audit decision aids. Meeting these objectives, as discussed later, should enhance the accessibility of audit J/DM research findings, highlight boundary conditions of extant theories, focus future research on promising issues, identify profitable methods for future research, and stimulate J/DM theory construction and revision.