The impact of heuristics and biases in the application of professional judgement by internal auditors in the stage of fieldwork

DOI

10.2991/insyma-18.2018.27How to use a DOI?

Keywords

heuristics, bias, internal audit, professional judgment

Abstract

This study aims to find the impact of heuristics and bias in the application of professional judgment by internal auditors in the stage of fieldwork in "Company X", a company engaged in the distribution of fuel oil in West Nusa Tenggara. "Company X" has conducted internal audit activities although the effort is not maximized. This research was conducted by using the qualitative approach with an interpretive paradigm to explain these anomalies within internal auditor's professional judgment. The internal audit activities within "Company X" have some hindrance to the heuristic thinking process of the audit team members. One of them is a bias which caused interference within the audit team member heuristic. There are some forms of bias in audit namely overconfidence, availability, confirmation, and anchoring. All of them affect "Company X" internal auditor's professional judgment significantly except availability bias

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jonathan Tanone
AU  - Senny Harindahyani
PY  - 2018/03
DA  - 2018/03
TI  - The impact of heuristics and biases in the application of professional judgement by internal auditors in the stage of fieldwork
BT  - Proceedings of the 15th International Symposium on Management (INSYMA 2018)
PB  - Atlantis Press
SP  - 108
EP  - 112
SN  - 2352-5398
UR  - https://doi.org/10.2991/insyma-18.2018.27
DO  - 10.2991/insyma-18.2018.27
ID  - Tanone2018/03
ER  -