Prospective evaluation of a new audit standard: Expert rhetoric and flexibility in cost‐benefit analysis

IF 3.2 3区 管理学 Q1 BUSINESS, FINANCE
Stephanie Donahue, Bertrand Malsch
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Abstract

The objective of this research is to better understand experts' contributions to the prospective evaluation of a new audit standard—in this case, key audit matter (KAM) reporting. To this end, we assisted the Canadian Auditing and Assurance Standards Board by leading its consultation of 22 expert financial statement users. The methodology employed to observe our participants' opinions and cognitive processes involves thought protocol and interviews. By analyzing the rhetorical base of experts' prospective analysis, we show that our participants' arguments are often laden with postulates and lack data points, leading to generalizations. Sounder arguments entail more nuanced views but lead to uncertainties. We therefore highlight a tension between the rhetorical content of experts' insights and the calculative rationality of a cost‐benefit analysis. We also find that experts with less cognitive flexibility are less likely to be supportive of the adoption of a standard implying a change of habits in the way they process information. This tension and cognitive bias generate a significant interpretive challenge to determine a clear and dominant stance in the consultation. We discuss the implications of these findings for the legitimacy of prospective evaluations and the conduct of cost‐benefit consultations with experts. We also contribute to the literature on KAMs by substantiating concerns about the value of extended auditor reports to users.
新审计准则的前瞻性评估:成本效益分析中的专家言论和灵活性
本研究的目的是更好地了解专家们对新审计准则--这里指的是关键审计事项(KAM)报告--的前瞻性评估所做的贡献。为此,我们协助加拿大审计与鉴证准则委员会领导了对 22 位财务报表用户专家的咨询工作。为了观察参与者的观点和认知过程,我们采用了思想协议和访谈的方法。通过分析专家前瞻性分析的修辞基础,我们发现参与者的论点往往充满假设,缺乏数据点,导致以偏概全。合理的论据会带来更细致入微的观点,但也会导致不确定性。因此,我们强调了专家见解的修辞内容与成本效益分析的计算理性之间的矛盾。我们还发现,认知灵活性较低的专家不太可能支持采用一种意味着改变他们处理信息的习惯的标准。这种紧张关系和认知偏差为在磋商中确定明确的主导立场带来了巨大的解释挑战。我们讨论了这些发现对前瞻性评估的合法性以及与专家进行成本效益磋商的影响。我们还通过证实对扩展审计师报告对用户价值的担忧,为有关 KAMs 的文献做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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