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Unformatted text preview: A of Figure 2 displays the aggregate data for
the combined audit/fraud choices in the NP/WG setting. The ﬁgure indicates the trust audit
is the auditors’ modal choice (selected 42 percent of the time) and the cheat option is the
modal choice for managers (selected 46 percent of the time). The results indicate a mismatch that is detrimental to the auditors. (Hypothesis 2, discussed shortly, provides a more
rigorous test of self-serving bias by examining the incremental inﬂuence of nonbinding
Table 3 shows that the average audit index was 82.14, a level indicating a tendency
toward the trust audit choice. Using approximate randomization, I ﬁnd no evidence that
0.10) or predominately trust (p
auditors’ choices are predominately Nash (p
9 10 In the NP / WG, YP / WG, and YP / SG settings, ﬁve pairs of subjects interacted for 19 rounds, and six pairs
interacted for 18 rounds during the regular play phase. This generated a total of 203 choices [(5 pairs
203] for these three s...
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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