 Consideration of the social context of auditors’ reliance on expert system output during evaluation of loan loss reservesLaurie Swinney Intelligent Systems in Accounting, Finance and Management, 1999, vol. 8, issue 3, 199-213 Abstract: Auditors are accountable for judgments made within the social context of the accounting firm. Tetlock (1985) states that decision makers often use the acceptability heuristic to cope with accountability. According to this heuristic, individuals make decisions which they are reasonably confident will be acceptable by others to whom they are accountable. When auditors form judgments with the aid of expert system output, they must determine the appropriate level of reliance on the expert system output. Since the expert system output is based on the input of experts, auditors may decide the output is ‘acceptable‘ and overrely on the output. In addition, because of the conservative nature of the accounting firm, expert system output which is negative may be viewed as more acceptable than positive output leading to greater overreliance. The results indicate that auditors do overrely on expert system output and rely to a greater degree on output which is negative versus output which is positive. Copyright © 1999 John Wiley & Sons, Ltd. Date: 1999 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:isacfm:v:8:y:1999:i:3:p:199-213 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Intelligent Systems in Accounting, Finance and Management from John Wiley & Sons, Ltd. |
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