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Research Note: The Influence of Attestation on Users’ Perceptions of Assertion Credibility in the Asset Management Industry
Author(s) -
Fargher Neil,
Gramling Audrey A.
Publication year - 2003
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/1099-1123.00007
Subject(s) - assertion , credibility , business , accounting , perception , investment (military) , compliance (psychology) , psychology , political science , social psychology , computer science , law , neuroscience , politics , programming language
This study investigates whether attestation of asserted compliance with specified standards influences users’ perceptions of assertion credibility. We find that, when an investment manager reports above average performance, users perceive the investment manager's assertion to be somewhat more credible when an independent third party has attested to the assertion. When performance results have been attested by an accounting firm, pension fund sponsors perceive that Big Six firms provide a higher level of credibility than do non‐Big Six firms. We do not, however, find a difference in perceptions between attestations provided by Big Six firms and attestations provided by financial services firms.