Elaboration in Audit Financial-Statement Review: An Experimental Investigation From a Persuasion Perspective
type: CreativeWork
description: My experiment shows that reviewers alter the type of elaboration activities in which they engage based on (1) perceptions of the performance of others in the multi-person audit environment and (2) the relative costs of judgments/decisions inconsistent with client and financial-statement user desires. Specifically, I manipulate strategic preparer behavior (whether the preparer performed effectively or ineffectively when encountering similar environmental factors in the past) and business risk (higher/lower). As predicted, these two variables not only independently affect the type of reviewer elaboration, but interact to affect reviewer behavior as well. Further, type of elaboration activities was shown to be an important mediating variable between these independent variables and reviewer judgment and choice.
abstract: My experiment shows that reviewers alter the type of elaboration activities in which they engage based on (1) perceptions of the performance of others in the multi-person audit environment and (2) the relative costs of judgments/decisions inconsistent with client and financial-statement user desires. Specifically, I manipulate strategic preparer behavior (whether the preparer performed effectively or ineffectively when encountering similar environmental factors in the past) and business risk (higher/lower). As predicted, these two variables not only independently affect the type of reviewer elaboration, but interact to affect reviewer behavior as well. Further, type of elaboration activities was shown to be an important mediating variable between these independent variables and reviewer judgment and choice.
author: Rich, Jay Strand
language: eng
keywords: Psychology, Behavioral
date published: 2015-09-28T15:39:25Z
date modified: 2026-07-22T22:26:28Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/87169