Selective Perception and Group Brainstorming: An Investigation of Auditors’ Fraud Risk Assessment

SMC Author

Naman Desai

SMC Affiliated Work

1

Status

Faculty

School

School of Economics and Business Administration

Document Type

Article

Publication Date

2016

Publication / Conference / Sponsorship

International Journal of Behavioural Accounting and Finance

Description/Abstract

The present study examines the impact of two important contextual variables: pressure on management and the available opportunity to indulge in unethical practices (i.e., commit fraud) on auditors' selective perceptions and fraud risk assessments. Prior research indicates both advantages as well as disadvantages of group decision-making. Therefore, the second aim of the study is to investigate if selective perceptions of individual auditors are exaggerated in group settings. The overall results of our experiments indicate that observed differences in individual decision-makers fraud risk assessments (in response to different levels of pressures and opportunities) were significantly accentuated when they performed group brainstorming. Our findings suggest that group brainstorming, instead of reducing the influence of contextual characteristics on selective perception, actually accentuates that effect. Implications for policy and practice are discussed.

Scholarly

yes

Peer Reviewed

1

DOI

10.1504/IJBAF.2016.079875

Volume

6

Issue

1

First Page

1

Last Page

25

Disciplines

Business | Economics

Original Citation

Desai N.K. and Gupta, V. (2016) Selective Perception and Group Brainstorming: An Investigation of Auditors’ Fraud Risk Assessment. International Journal of Behavioural Accounting and Finance, 6(1), 1-25. doi:10.1504/IJBAF.2016.079875

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