Order effects and recency: where do we go from here?

Previous studies of auditor judgments have examined whether the order in which information is received affects their judgments. In particular, these studies have considered whether there is a recency effect which occurs when the disconfirmatory/confirmatory evidence treatment results in a final judgment which is significantly higher than the confirmatory/disconfirmatory treatment. More recent studies have investigated the circumstances when recency effects exist and when they are mitigated. The results of the studies are mixed. After the addition of two further studies (Arnold et al ., 2000; Monroe and Ng, 2000) in this edition of the journal, the results are still mixed. The paper outlines the possible explanations for the mixed results across studies and some issues that need to be addressed prior to collection of further empirical evidence.     

Audit judgment research—Issues addressed, research methods and future directions

This paper outlines the purpose of judgment and decision making research in auditing. It examines the following areas of this research: policy capturing; heuristics and biases; information search, hypothesis generation and protocol analysis; knowledge and memory; group decision making; decision aids; and environmental and motivational issues. For each of these issues I outline the key research issues that have been addressed, the research methods used, a summary of past research and potential future research.     

Book Review Section

Books reviewed:
Chun Wei Choo, The Knowing Organization: How Organizations Use Information to Construct Meaning, Create Knowledge, and Make Decisions
J. Hoeggett and L. Edwards, Financial Accounting in Australia
Anita S. Hollander, Eric L. Denna and J. Owen Cherrington, Accounting Information Technology and Business Solutions
Michael McGrath and Christopher Viney, Financial Institutions, Instruments and Markets
J. William Petty, Rolffe Peacock, Peter Martin, Michael Burrow, Arthur J. Keown, David F. Scott Jr, and John D. Martin, Review of Financial Management     

Book Review Section

Books reviewed:
Richard Brealy, Stewart Myers, Graham Partington and David Robinson, Principles of Corporate Finance
M. Hutton and I. Ferrier, Tolleyy's UK Taxation of Trusts
John Irvine, Company Accounting Fundamentals
Alan Tyree and Andrea Beatty, The Law of Payment Systems
John Wanna, Joanne Kelly and John Forster, Managing Public Expenditure In Australia     

Book Review Section

Books reviewed:
Chun Wei Choo, The Knowing Organization: How Organizations Use Information to Construct Meaning, Create Knowledge, and Make Decisions
J. Hoeggett and L. Edwards, Financial Accounting in Australia
Anita S. Hollander, Eric L. Denna and J. Owen Cherrington, Accounting Information Technology and Business Solutions
Michael McGrath and Christopher Viney, Financial Institutions, Instruments and Markets
J. William Petty, Rolffe Peacock, Peter Martin, Michael Burrow, Arthur J. Keown, David F. Scott Jr, and John D. Martin, Review of Financial Management     

Book Review Section

Books reviewed:
Peter Atrill, Eddie McLaney, and David Harvey, Accounting An Introduction
Craig Deegan, Australian Financial Accounting
Ronald W. Hilton, Managerial Accounting     

Book Review Section

Book reviewed in this article: A. D. Bain The Economics of the Financial System Dan Scheiwe Understanding Australian Accounting Pronouncements G. Cooper, R. Deutsch and R. Krewer Income Taxation: Commentary and Materials B. Cooper, S. Lukaitis and K. Adams Computer Audit Case Study: Melchem Industries J. Godfrey, A. Hodgson, S. Holmes and V. Kam Accounting Theory M. A. Sadhu and I. A. Langfield-Smith A Qualitative Standard for General Purpose Financial Reports: A Review J. Holland International Financial Management E. A. Clarke Accounting: Introduction to Principles and Practice     

Book Review Section

Book reviewed in this article: W.C.R Hartley An Introduction to Business Accounting for Managers Lloyd M. Cailard and William J. Fallot Business Valuation Practice F.A. Gul, H.Y. Teoh, B.H. Andrew and P. Schelluch Theory and Practice of Australian Auditing C. Grainger Consolidation Accounting Procedures Workbook J.T. Barfield, C.A. Raiborn and M.R. Kinney Cost Accounting: Traditions and Innovations J.T. Barfield, C.A. Raiborn and M.R. Kinney Insights: Readings in Cost Accounting John Vilgoen Review of Strategic Management: Planning and Implementing Successful Corporate Strategies W. Scholtz Australian Corporate Taxation     

Book Review Section

Book reviewed in this article: Philip Brown Capital Markets - Based Research in Accounting: An Introduction Jonathan Anderson and Milicent Poole Thesis and Assignment Writing John Wiley & Sons, Queensland, Second Edition K Keasey and R Watson Small Firm Management: Ownership, Finance and Performance John J Glynn Public Sector Financial Control and Accounting Stephen A Zeff and Bala G Dharan Readings and Notes on Financial Accounting: Issues and Controversies John G Burch Cost of Management Accounting - A Modern Approach K David and I Harper Privatisation: The Financial Implications P Hutchinson, S Alison, W Gregory and S Lumby Financial Management Decisions, Principles and Applications     

Book Review Section

Book reviewed in this article: G. Whittred and I. Zimmer Financial Accounting: Incentive Effects and Economic Consequences R. FitzHerbert Blue Print for Investment R.B. Wheeler Accounting For Profit Determination: A Conceptual Approach D. Northcott Capital Investment Decision Making Editors: J. Ratnatunga, J. Miller, N. Mudalige, and A. Sohal Issues in Strategic Management Accounting M. Ezzamel Business Unit and Divisional Performance Measurement S. A. Zeff, F. van der Wei and K. Camfferman Company Financial Reporting: A Historical and Comparative Study of the Dutch Regulatory Process P. Jubb and S. Haswell Company Accounting     

Book Review Section

Book Reviews:
W. Steve Albrecht and Robert J. Sack, Accounting Education: Charting the Course through a Perilous Future
S. R. Bishop, H. R. Crapp, R. W. Faff and G. J. Twite, Corporate Finance
Denzil Davies, Booth: Residence, Domicile and UK Taxation
Michael Kobetsky, Michael Dirkis and Anne O'Connell, Income Tax: Text, Materials and Essential Cases
Cheng-Few Lee (ed.), Advances in Quantitative Analysis of Finance and Accounting
Michelle A. Sims and Robert C. Clift, Australian Corporate Accounting     

Book Review Section

Book reviewed in this article: K.J. Leo, C.J. Lambert & J. W. Sweetig Advanced Company Accounting James Guthrie, Lee Parker and David Shand, The Public Sector: Contemporary Readings in Accounting and Auditing Contemporary Issues in Accounting Research, Edited by Bhabatosh Baerjee (IAA Research Foundation 1991) Funds and Portfolio Management Institutions: An International Survey. Edited by Stefano Preda, Elsevier Barfield, J.T., Raiborn C.A. and Dalton M.A. Cost Accounting— Traditions and Innovations (1991) John Hoggett and Lew Edwards, Financial Accounting in Australia Second Edition. (John wiley & Sons, Brisbane 1990)