Download or read book The Effect of Perceived Deception on Auditor Judgment and Decision-making During Analytical Procedures written by Frank R. Nation (Jr.) and published by . This book was released on 2013 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the influence of perceived deception on auditors' mental representations and subsequent judgments during the decision-making process associated with analytical procedures. Koonce's (1993) framework suggests that the cognitive construct characterized by a mental representation influences subsequent cognitive processes of hypothesis generation, information search, hypothesis evaluation and decision-making with regard to audit procedures during the conduct of analytical procedures. Attribute framing effects from prospect theory predict negative valence events such as the perception of deceit, lead to skeptical judgments. The experimental manipulation presents the participants with an inquiry interview in which an auditor asks the controller about the results of analytical procedures for the Net Sales and the Inventories accounts. The controller's responses to Net Sales are presented without exhibition of deceptive cues while his responses to Inventories queries exhibit behavioral deceptive cues. I predict that auditors' will be more skeptical with respect to the account linked with deceit and less skeptical of accounts not linked with deceit. In harmony with my predictions, I find support for this hypothesis. Additionally, I predict that decision outcomes will mirror the skeptical nature of the mental representations. Again, congruent with my predictions I find support for the hypotheses predicting that deceit produces negative valence in the mental representation of auditors, which, subsequently produces more skeptical decision outcomes relative to the accounts linked with perceived deceit.