The Effectiveness of Foresight Decision Aids and Hindsight Strategy to Mitigate Auditors' and Evaluators Judgment

• Main Author: Narsa, I Made
• Format: Article PeerReviewed
• Language: English
• Published: Worl Business Institute 2013
• Subjects: HJ9701-9940 Public accounting. Auditing
• Online Access: http://repository.unair.ac.id/66194/1/Narsa.pdf; http://repository.unair.ac.id/66194/; http://www.wrbrpapers.com/
• Institution: Universitas Airlangga

This research tests the effectiveness of foresight decision aids (single outcome and multiple outcome) and hindsight strategy (alternative outcome and alternative stakeholder) to mitigate auditors’ and evaluators’ judgment error. Two between subject experimental designs were conducted concurrently involving 282 participants. The results showed that the quality of auditors’ decisions increase and move to evaluators’ perspective. Meanwhile, the quality of evaluators’ decisions increase and move to auditors’ perspective. Other findings showed that both auditors and evaluators tend to pay more attention on negative than positive information.