Stanley F. Biggs, Theodore J. Mock, An Investigation of Auditor Decision Processes in the Evaluation of Internal Controls and Audit Scope Decisions, Journal of Accounting Research, Vol. 21, No. 1 (Spring, 1983), pp. 234-255
[This research presents some descriptive evidence of how auditors perform analytical review in a complex and realistic task setting. Specifically, the research investigates how auditors who differ in terms of experience, design and conduct analytical review and revise audit programs in light of their analytical review judgments. To accomplish this purpose, a comprehensive case was administered to four auditors who performed the task while thinking aloud. The results show that both managers and seniors identified the crucial audit problems embedded in the case. However, there was little evidence that analytical review provided a basis for reducing the extent of planned substantive audit procedures even in audit areas where reduction seemed to be warranted. Also, several important behavioral differences were observed in the information acquisition and decision behavior of the managers and seniors. Some of these differences are consistent with differences found in studies of physics experts and novices can be attributed to constructs in human memory and reasoning research. Interestingly, the protocols produced almost no evidence of the use of probabilistic reasoning (e.g., Bayesian inference) by any of the auditors. However, there is evidence of their use of the kinds of reasoning processes being proposed and evaluated in artificial intelligence research.]
Responds to comments on a paper which employed the Decision Style theory to examine decision speed, information purchase and information use. Strategies of scientific investigation; Revision of the Decision Style model.
This article explores the humans information processing system aspect of information system design. Although the receiver or user has long been recognized as an important variable to consider, only recently have research results and methods led to useful insights. The main studies considered include both those that speculate as to the implications of human information processing upon alternative financial accounting systems and several empirical studies that have investigated the impact of behavioral variables including "decision style" upon accounting information use and value. The premise that behavioral factors are important in accounting seems to be generally accepted and much research has been conducted. In fact, entire accounting conferences have been devoted to this topic. Given the growth of interest in human information processing in accounting, a brief review of the varieties of approaches to this area may provide clarity for future research. The study of cognition or thinking processes is one of the earliest developments in scientific psychology. In its inception, cognitive psychology divided into normative and descriptive approaches.