Not just the facts: the effect of irrelevant information on internal auditor judgment

Joseph A. Giordano and Lisa Victoravich

Managerial Auditing Journal, 2024, vol. 40, issue 1, 66-89

Abstract: Purpose - This paper aims to examine how introducing irrelevant information into a risk decision scenario leads to less skeptical internal auditor assessments. Design/methodology/approach - This paper conducted an internet-based experiment with 157 internal auditors manipulating information relevance. The experiment controlled for individual differences in trait skepticism, perceived information relevance and Chief Information Officer (CIO) warmth. Findings - Internal auditors exhibit decreased skepticism when irrelevant information contradicts preconceived stereotypes of management, consistent with the dilution effect. When the CIO is described as gregarious, counter to common stereotypes, internal auditors assess risk as less severe compared to when the CIO is described as introverted or when no personality information is provided. Originality/value - This paper provides insight as to when internal auditor judgment may be compromised.

Keywords: Dilution effect; Internal audit; Skepticism; Judgment; Representativeness; Risk assessment; Skeptical judgment (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-02-2024-4240

DOI: 10.1108/MAJ-02-2024-4240

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