（1997）Reliance on Decision Aids：An Examination of Auditors Assessment of Management Fraud.pdfVIP

Auditing : A Journai of Practice Theory Voi . 16. No. 2 Fall 1997 Reliance on Decision Aids: An Examination of Auditors Assessment of Management Fraud Martha M. Eining, Donald R. Jones and James K. Loebbecke SUMMARY The assessment of management fraud risk is a complex decision process, but one with which few auditors have had experience. As a result, decision aids have been suggested to support this process. Unfortunately, many times users do not rely on decision aids even when doing so would improve the quality of the decision . This paper reports on an experiment that examines the use of an expert system decision aid created to enhance fhe engagement of the user and increase reliance on the aid . Auditors using the expert system exhibited the ability to better discriminate between situations with varying levels of management fraud risk and selected more consistent subsequent deci- sions regarding appropriate audit actions than did users of a decision aid that provided only a suggested assessment, a logit statistical model . The loglt model users did dis- criminate better than both checklist users and unaided decision makers. Keywords: Management fraud , Decision aid , Expert system . Decision aid reliance . Red flags . Data Availability : Contact the authors . S SAS No. 82 gives little guidance on how the tatement on Auditing Standards (SAS) No . 82 (AICPA 1997) requires that the auditor information in the red fiags should be