Auditors' forecasting in going concern decisions: framing, confidence and information processing
- Autores: Waymond Rodgers, Andrés Guiral Contreras
- Localización: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS], ISSN-e 1988-8767, Nº. 223, 2005
- Idioma: inglés
- Enlaces
-
Resumen
Forecasts provide a key factor in determining whether a client remain a going-concern.
Auditors’ judgments and decision choices may be called upon to evaluate a forecast that could shed light on a company’s going-concern status. This research attempts to model evaluations and choice and two additional components influencing auditors’ opinions in the going concern task:
decision framing and confidence in the decision that is made.
A field experiment was conducted in which auditors assessed a company’s forecasted financial statements and made a decision about whether to issue an examination report supporting the statements. A revised information processing model was presented and tested that added the roles of framing and confidence in auditors’ decision making. It was found that decision framing influenced auditors’ perception. Perceived understanding influenced subsequent evaluations of the reasonableness of client-provided financial forecasts, which in turn influenced decisions about whether to issue an assurance letter supporting the forecasted financial statements.
