Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia

Research Article

Accountability and Herding Bias: An Experimental Study on Audit Fraud Judgement

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  • @INPROCEEDINGS{10.4108/eai.13-8-2019.2294265,
        author={Suzy  Novianti and Keviniana Pangarsi Tunbonat and Intiyas  Utami},
        title={Accountability and Herding Bias: An Experimental Study on Audit Fraud Judgement},
        proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICFF},
        year={2020},
        month={5},
        keywords={accountability herding audit fraud judgment},
        doi={10.4108/eai.13-8-2019.2294265}
    }
    
  • Suzy Novianti
    Keviniana Pangarsi Tunbonat
    Intiyas Utami
    Year: 2020
    Accountability and Herding Bias: An Experimental Study on Audit Fraud Judgement
    ICFF
    EAI
    DOI: 10.4108/eai.13-8-2019.2294265
Suzy Novianti1,*, Keviniana Pangarsi Tunbonat1, Intiyas Utami1
  • 1: Satya Wacana Christian University
*Contact email: suzy.noviyanti@staff.uksw.edu

Abstract

Auditors’ behavior and attitude likely affect their judgments in determining fraud risks. As suggested by previous studies, an important auditor behavior is accountability that arguably affects auditors’ judgment. Together with herding behavior, accountability likely affects audit fraud judgment. This study aims to examine the effects of accountability and herding behavior on audit fraud judgment. As quantitative research, this study uses a 2x2 between-subjects experimental design. The subjects are 79 external auditors in Central Java Province. The results show that both accountability and herding affect audit fraud judgment. Additionally, the paper also demonstrates that auditors with high (low) accountability and low (high) herding behavior exhibit the best (worst) audit fraud judgment. Thus, this study suggests that partner auditors need to ensure that their auditors exhibit disciplined behaviors. Also, this paper implies that auditors need to protect their independence and to be less affected by others’ opinions.