The study of behavioral decision making has recently expanded into the area of accounting and auditing. This branch of research seeks to understand the cognitive processes that govern such necessary functions as the pricing of products and services, evaluating corporate performance, granting credit to prospective borrowers, and investing in financial securities. In Judgment and Decision-Making Research in Accounting and Auditing, editors Robert and Alison Ashton present and review more than twenty years of research in decision-making science. The book analyzes the judgments that business managers, investors, auditors and creditors make daily; considers the assets and liabilities of applied decision making, and makes suggestions for future research. Accounting and auditing academics, researchers, practitioners and students who seek a survey of the field and its applications will find this to be a solid reference work.
Contributors; Series preface; Preface; Acknowledgements; Part I. Overview: 1. Perspectives on judgement and decision-making research in accounting and auditing Robert H. Ashton and Alison Hubbard Ashton; Part II. Judgment and Decision-Making Research Involving Users of Accounting Information: 2. Decision-making research in managerial accounting: return to behavioural-economics foundations William S. Waller; 3. Experimental incentive-contracting research in management accounting S. Mark Young and Barry Lewis; 4. Judgement and decision-making research in financial accounting: a review and analysis Laureen A Maines; 5. The individual versus the aggregate Joyce Berg, John Dickhaut and Kevin McCabe; Part III. Judgement and Decision-Making Research Involving Auditors of Accounting Information: 6. Judgment and decision-making research in auditing Ira Solomon and Michael D. Shields; 7. The role of knowledge and memory in audit judgement Robert Libby; 8. Research in and development of audit-decision aids William F. Messier Jr; Part IV. Conclusion: 9. Twenty years of judgement research in accounting and auditing Michael Gibbins and Robert J. Swieringa; References; Index.