This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ions appear to ameliorate the dysfunctional tendency to fall
prey to puffery.
Results for H4: Comparing Audit Levels across the Resolution and Regular Play
Hypothesis 4 (Null) predicts auditors’ choices will not change after observing managers’
choices from the regular play phase. The alternative predicts that information auditors
receive about the managers’ fraud level will lead them to choose higher levels of auditing
during the resolution phase. Evidence that auditors increase their level of auditing during
the resolution phase, would suggest that auditors’ expectations are not in equilibrium in the
regular play phase. Table 5 summarizes the three measures for the regular play and the
resolution phases. For NP/WG, the audit index was higher in the resolution phase (104.55),
than in the regular play rounds (82.14). This difference is marginally signiﬁcant (p 0.07)
based on 11 matched pairs. There is a marginally signiﬁcant increase in auditing in the
other three settings, based on the average audit index. When I pool all the data across the
44 subjects, I do observe a signiﬁcant incr...
View Full Document
This note was uploaded on 01/27/2014 for the course ACCY 405 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.
- Fall '08