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Order effects and memory for evidence in individual versus group decision making in auditing
Author(s) -
Ahlawat Sunita S.
Publication year - 1999
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/(sici)1099-0771(199903)12:1<71::aid-bdm308>3.0.co;2-q
Subject(s) - audit , group (periodic table) , order (exchange) , group decision making , psychology , cognitive psychology , social psychology , computer science , econometrics , business , accounting , economics , finance , chemistry , organic chemistry
Sequential processing of evidence may lead to recency effect, a potential bias in judgment. The present research seeks to extend the literature on recency effects by assessing the potential moderating influence of team work: whether group decision making moderates the severity of recency effects predicted by Hogarth and Einhorn (1992), and whether group processing influences the accuracy of, and confidence in memory for evidence. Experienced auditors from a Big‐6 accounting firm made audit judgments, either individually or as groups. They were randomly assigned to one of two levels of evidence presentation order. After performing the judgment task, participants completed two evidence recognition tests. Consistent with prior findings, recency effects on judgments were observed, but only for individuals . Group judgments or audit reports were not affected by recency. Order effects, however, did not translate into different choices of audit reports, and did not persist in memories of either individuals or groups. As expected, group memory was more accurate than individual memory and groups were more confident than individuals. Overall, confidence in accurate memories was greater than in inaccurate ones. Copyright © 1999 John Wiley & Sons, Ltd.