Institutional Repository | Satya Wacana Christian University: Efek Risensi dalam Keputusan Audit : Diskusi Kelompok Sebagai Upaya Mitigasi

ABSTRACT

The main objectives of this research are 1. Give empirical evidence recency effect is
happen in the internal control system decision between the individual that informed schematic
and non schematic which presented sequentially. 2. Give evidence that the discussion can
mitigate recency effect. Recency bias is decision bias that occurs when decision maker weighting
the last information bigger than the previous information. In the auditing process there are some
stages, one of that is inspection stage. At that stage, senior auditors get the evidence reporting
from junior auditors. The senior auditors tend to weighting the last information bigger than the
previous information. The sequence of evidence causing reviewer bias which affect auditors
quality. The previous research showed that recency effect occurs in the auditing field because of
the sequnce of evidence that received.This research use manual experimentation method with
papers and stationeries. Participants who used are accounting students which following auditing
subjects. The research result show that there is a difference between the individual that informed
schematic and non schematic, which presented sequentially. This fact proves that recency effect
occurs because of the differences of information presented. And group discussion can mitigate
recency effect at the patterns of sequential information presentation with schematic or non
schematic information type.
Keywords : recency effect, auditing decision, group discussion, mitigation, internal control
system