The influence of professional identity and outcome knowledge on professional judgment

• Other Authors: Johnson, Anna J. (author)
• Format: Others
• Language: English
• Published: Florida Atlantic University
• Subjects: Accountants > Professional ethics; Accounting > Decision making; Auditing > Decision making; Business ethics; Judgment; Managerial accounting
• Online Access: http://purl.flvc.org/fau/fd/FA00004126; http://purl.flvc.org/fau/fd/FA00004126

In response to the release of one of its Public Company Accounting Oversight Board (PCAOB or Board) inspection reports, Deloitte notes that “[p]rofessional judgments of reasonable and highly competent people may differ as to the nature and extent of necessary auditing procedures, conclusions reached and required documentation” (PCAOB, 2008, 30). Other responses to PCAOB findings echo this sentiment. Stakeholders need to understand causes of differences between experts’ professional judgments to effectively utilize PCAOB inspection findings and firms’ responses to those findings. This study uses Social Identity Theory to explore whether role identity as an audit partner, internal reviewer, or PCAOB inspector, influences an expert’s judgments in an ambiguous decision environment. I find that professional judgments do not differ based on professional identity. This study also examines whether the presence or absence of outcome knowledge explains judgment differences among auditing experts. Consistent with prior research, e.g. Peecher & Piercey, 2008, outcome knowledge does affect experts’ professional judgment. I also find that experts’ level of organizational identification and membership esteem impacts professional judgment. === Includes bibliography. === Dissertation (Ph.D.)--Florida Atlantic University, 2014. === FAU Electronic Theses and Dissertations Collection