search query: @author Wright, A. / total: 24
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| Author: | Asare, S. K. Wright, A. |
| Title: | Hypothesis revision strategies in conducting analytical procedures |
| Journal: | Accounting, Organizations and Society
1997 : NOV, VOL. 22:8, p. 737-755 |
| Index terms: | THEORIES EVALUATION STRATEGY |
| Language: | eng |
| Abstract: | This article provides evidence on two issues that could compromise effective and efficient hypothesis evaluation: the revision of beliefs over competing hypotheses given diagnostic evidence; and whether an eliminated hypothesis is subsequently resuscitated. 55 auditors were provided audit test results and were asked to evaluate five potential hypotheses that may have caused a material fluctuation in gross margin ratio of a client. The findings indicate that when presented with diagnostic evidence about a target hypothesis, auditors were prone to adjusting the likelihood of the target hypothesis but not revising the likelihoods of competing hypotheses. This non-Bayesian revision strategy appears to represent a trade-off reflecting competing forces of cognitive strain, efficiency and countability. |
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