Anchoring and adjustment effects on audit judgments: experimental evidence from Switzerland

Purpose The purpose of this study is to illustrate the potentially detrimental effects on audit decision-making certain judgmental heuristics, which can lead systematic biases. This paper provides background heuristics and biases approaches increase auditors' awareness anchoring adjustment affecting judgments adversely. Design/methodology/approach reports results an experimental research design analyzing judgment 85 auditors in Switzerland. Findings Based experiment, indicate evidence existence heuristic Swiss judgments. authors could identify influence company size, experience knowledge about behaviorism anchor with regard effect judgment. Research limitations/implications tasks were relatively simple abstractions from more complex analytical review situations faced by practicing auditors. Due small sample cannot ensure representativeness results. Practical implications Professional a skill that auditor acquires overtime, combined knowledge, allows him achieve reasonable judgments, being independent other opinions free material given circumstance. Our show who are aware less prone Originality/value first analyze impact explicit Through stronger cognitive biases, professional skepticism be enhanced.