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Auditors are aware that managers had previous

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Unformatted text preview: iple sessions of the experiment. In the experiment, auditors arrive at the experimental laboratory one-half hour earlier than managers to receive their instructions. When the managers arrive, the instructions are summarized for both managers and auditors to enhance common knowledge of the game. Auditors are aware that managers had previous experience in the experiment. The purpose of having experienced managers is to create an environment in which managers have information and experience advantages and to increase managers’ awareness of the potential for opportunistic behavior. I did this to create an environment ripe with the potential for auditors to fall prey to self-serving biases in order to investigate the extent to which groups can mitigate the bias.5 Table 2 summarizes how the treatments were operationalized in the experiment. The first column identifies the four experimental settings. The second column indicates how I operationalize the WG and SG settings. In the WG settings, auditors...
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