Date of Award
3-2023
Document Type
Dissertation
Degree Name
Ph.D.
Organizational Unit
Daniels College of Business
First Advisor
Lisa M. Victoravich
Second Advisor
Lorenzo Patelli
Third Advisor
Alisa G. Brink
Keywords
Behavioral accounting, Dilution effect, Experiment, Internal audit, Representativeness
Abstract
Internal auditors assigned to assess internal controls over financial reporting incorporate irrelevant information into their judgment, showing decreased skepticism when irrelevant information contradicts preconceived stereotypes of management, known as the dilution effect and attributed to the representativeness heuristic. Irrelevant information consistent with preconceived stereotypes does not decrease skepticism. In this experiment practicing internal auditors are provided an irrelevant description of the Chief Information Officer portrayed as either gregarious or introverted then subsequently receive relevant internal controls information. When the Chief Information Officer is described as gregarious, counter to common stereotypes, internal auditors assess risk as less likely to occur compared to when the Chief Information Officer is described as introverted or when no personality information is provided. This study controls for individual differences in trait skepticism, perception of information relevance, and CIO warmth finding that the effect of irrelevant information on skeptical judgment is stable regardless of internal auditor experience, gender, and presence of a professional certification. These findings provide insight into how internal auditors incorporate information into a risk decision indicating that irrelevant information has a significant role in skeptical judgment.
Publication Statement
Copyright is held by the author. User is responsible for all copyright compliance.
Rights Holder
Joseph Anthony Giordano
Provenance
Received from ProQuest
File Format
application/pdf
Language
en
File Size
105 pgs
Recommended Citation
Giordano, Joseph Anthony, "The Effect of Nondiagnostic Information on Internal Auditor Skepticism: Capturing the Dilution Effect" (2023). Electronic Theses and Dissertations. 2178.
https://digitalcommons.du.edu/etd/2178
Copyright date
2023
Discipline
Accounting
Included in
Accounting Commons, Business Administration, Management, and Operations Commons, Corporate Finance Commons, Finance and Financial Management Commons