The Influence Of Auditors ' Decision-making Strategies On Recency Effect:A Study On Audit Judgment Biases

Based on domestic and foreign literature,it can be concluded that few studies have focused on improving the quality of audit judgment and eliminating the impact of audit judgment biases from the perspective of various decision strategies.Therefore,we conducted an experiment incorporating behavioral decision theories to examine the influence of auditors' decision strategies on the recency effect in audit judgment biases.In order to guide the preferences for different decision strategies,regulatory focus theory was also adopted.The dissertation is divided into five chapters.Chapter 1 is an overall introduction and a literature review of recency effect and decision-making strategies in psychology and auditing researches;Chapter 2 mainly analyzes the regulatory focus theory,recnecy effect theory and its factors.By establishing the theoretical basis,chapter 2 proposes research framework and hypothesis of this dissertation.Chapter 3 describes the design of the experiment;Chapter 4 discusses the experimental results,tests the research hypotheses,analyses the effects of auditors' decision-making strategies and experience on the recency effect.Chapter 5 concludes the dissertation by stating its research conclusions,and put forward policy suggestins.Results show that:(1)In the semi-structured judgment task,either auditors'experience or decision-making strategy has no significant effect on recency effect.(2)In complicated audit judgments,analytical decision-making reduce the recency effect compared with intuitive decision-making.(3)In complicated audit judgments,auditors' experience functions as a moderator of the documented relationship.Specifically,analytical decision-making is more capable of weakening the recency effect when adopted by auditors with less experience,while auditors with more experience are barely affected by the recency effect,regardless of the decision strategy they adopt(intuitive or analytical),and the judgments they make using intuitive decision-making are relatively steady.Overall,it can be drawn that auditors should pay attention to their decision-making strategy and experience matches type of judgment task,experience sharing in audit teams,quality inspection and risk control of accounting firms effectively deter the recency effect in audit judgments and enhance audit judgment quality.