Auditors' performance evaluations: An analysis of the potential for cognitive biases and the effects of time pressure and experience

This dissertation examines auditors' performance evaluation processes to test for the presence of confirmatory or negativity biases in evaluators' consideration and use of information about a subordinate. Phases of the performance evaluation process are tested separately to detect any differential effects with respect to the search, use and recall of information, and the rating judgment. This research further examines the effects of increasing time pressure and experience in performance evaluation.; One hundred three professional auditors from one Big Five firm participated in a computer-based experiment focusing on information search, while another 47 auditors participated in a separate experiment focusing on information recall. Prior to performing their primary tasks, subjects read information that either induced a positive or negative initial impression about a subordinate, or provided no information upon which to base an initial impression. In the information search task, subjects were further given a time budget to place them under either a moderate or high level of time pressure.; Limited evidence was found for a confirmatory bias in subjects' search for and use of information. Subjects with a negative initial impression sought and used more negative than positive information, differing significantly from those with no initial impression. Similar patterns were found in subjects' recall in a separate experiment using similar information about the subordinate.; Consistent with an interaction between the level of time pressure and subjects' preconceived notions about the subordinate, the partial confirmatory bias in subjects' search and use patterns occurred only under a higher level of time pressure.; Contrary to expectations, experience in performance evaluation did not affect the total amount of information sought and used, or subjects' search patterns. However, experience was significantly associated with the nature of information actually cited on the performance evaluation form. For subjects with either a positive or neutral initial impression, increasing experience was associated with the use of more negative information. In contrast, subjects with a negative initial impression used more positive information when experience increased. Therefore, experience in performance evaluation appears to moderate the influence of a negative initial impression upon subjects' use of negative information.