Auditors' perception of management: Determinants and consequences

Bernard Wong-On-Wing, J. Hal Reneau, Stephen West

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

An experiment was conducted to examine the determinants and consequences of auditors' perceptions of management. Based on the theory of correspondent inference (Jones & Davis, 1965), the following hypotheses were formulated: (1) auditors are most likely to make a dispositional inference about management when a transaction deviates from expectations and is made under conditions of high choice; (2) auditors are more likely to make a dispositional inference about the management of a new client than that of a continuing client; and (3) dispositional inferences about management will affect auditors' subsequent judgments. The results support the first hypothesis. Contrary to the second hypothesis, subjects' dispositional inferences about management did not differ significantly between the continuing client and the new client conditions. Finally, the materiality threshold of auditors was found to be significantly associated with their inferences about management.

Original languageEnglish (US)
Pages (from-to)577-587
Number of pages11
JournalAccounting, Organizations and Society
Volume14
Issue number5-6
DOIs
StatePublished - 1989

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determinants
management
transaction
Auditors
Inference
experiment

ASJC Scopus subject areas

  • Accounting
  • Organizational Behavior and Human Resource Management
  • Information Systems and Management
  • Applied Psychology
  • Sociology and Political Science

Cite this

Auditors' perception of management : Determinants and consequences. / Wong-On-Wing, Bernard; Hal Reneau, J.; West, Stephen.

In: Accounting, Organizations and Society, Vol. 14, No. 5-6, 1989, p. 577-587.

Research output: Contribution to journalArticle

Wong-On-Wing, Bernard ; Hal Reneau, J. ; West, Stephen. / Auditors' perception of management : Determinants and consequences. In: Accounting, Organizations and Society. 1989 ; Vol. 14, No. 5-6. pp. 577-587.
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