Research Article
Accountability and Herding Bias: An Experimental Study on Audit Fraud Judgement
@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
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.
