Analyzing the recency effects on long series audit information and its mitigation methods with group discussions

Yolanda Christina Rambing, Intiyas Utami, Ika Kristianti


This study aims to examine the recency effect that occurs due to the effect of sequences on long series audit information and test the effectiveness of group discussion to improve the decision quality. The recency effect is a tendency to give more weight to the latest information compared to other information received. Therefore, it is necessary to provide a method for mitigating the recency effect by using group discussion. This study used a 2x2x2 experimental design for a subject with 81 participants from accounting students. The results show that the individual decision quality that experienced the recency effect due to positive-negative and negative-positive sequential information after group discussion became better than before group discussion. The individual decision quality that experienced the recency effect due to positive-negative simultaneous information could not be mitigated by group discussion. Group discussion is an effective method for overcoming the recency effect on sequential information rather than on simultaneous information. Therefore, group discussion can be used as a strategy to reduce recency effects and improve the quality of audience decisions.


Order effect, Primacy effect, Recency effect, Group discussion.

Full Text:



Almilia, LS & Supriyadi 2013, 'Examining belief adjustment model on investment decision making', International Journal of Economics and Accounting, vol. 4, no. 2, pp. 169-183.

Arnold, V, Sutton, SG, Hayne, SC, & Smith, CA 2000, 'Group decision making: The impact of opportunity-cost time pressure and group support systems', Behavioral Research in Accounting, vol. 12, pp. 69.

Ashton, AH & Ashton, RH 1988, 'Sequential belief revision in auditing', Accounting Review, vol. 63, no. 4, pp. 623-641

Ashton, RH & Kennedy, J 2002, 'Eliminating recency with self‐review: the case of auditors'‘going concern’judgments', Journal of Behavioral Decision Making, vol. 15, no. 3, pp. 221-231.

Ayuananda, TI & Utami, I 2017, 'Belief Revision towards Long-Series Information', Journal of Economics, Business & Accountancy Ventura (JEBAV), vol. 20, no. 2, pp. 213-226.

Chalos, P & Poon, MC 2000, 'Participation and performance in capital budgeting teams', Behavioral Research in Accounting, vol. 12, no., pp. 199-229.

Cushing, BE & Ahlawat, SS 1996, 'Mitigation of recency bias in audit judgment: The effect of documentation', Auditing, vol. 15, no. 2, pp. 110-122.

Daigle, RJ, Pinsker, RE, & Pitre, TJ 2014, 'The impact of order effects on nonprofessional investors' belief revision when presented a long series of disclosures in an experimental market setting', Accounting Horizons, vol. 29, no. 2, pp. 313-326.

Haryanto, H 2018, 'Pengaruh framing dan urutan bukti terhadap audit judgment: komparasi dan interaksi keputusan individu-kelompok', JURNAL AKUNTANSI DAN AUDITING, vol. 15, no. 1, pp. 1-36.

Hogarth, RM & Einhorn, HJ 1992, 'Order effects in belief updating: The belief-adjustment model', Cognitive Psychology, vol. 24, no. 1, pp. 1-55.

Hollingshead, AB 1996, 'The Rank-Order Effect in Group Decision Making', Organizational Behavior and Human Decision Processes, vol. 68, no. 3, pp. 181-193.

Isenberg, DJ 1986, 'Group polarization: A critical review and meta-analysis', Journal of personality and social psychology, vol. 50, no. 6, pp. 1141-1151.

Jamilah, S, Fanani, Z, & Chandrarin, G. (2007). Pengaruh gender, tekanan ketaatan, dan kompleksitas tugas terhadap audit judgment. Paper presented at the Simposium Nasional Akuntansi X.

Kelly, K 2010, 'The Effects of Incentives on Information Exchange and Decision Quality in Groups', Behavioral Research in Accounting, vol. 22, no. 1, pp. 43-65.

Nasution, D 2008, 'Pengaruh urutan bukti, gaya kognitif, dan personalitas terhadap proses revisi keyakinan', Media Riset Akuntansi, Auditing & Informasi, vol. 10, no. 1, pp. 1-18.

Patel, A 2001. 'Auditors' belief revision: recency effects of contrary and supporting audit evidence and source reliability'. USP Dept. of AFM/SSED Working Paper, (2001-1).

Pinsker, R 2007, 'Long series of information and nonprofessional investors' belief revision', Behavioral Research in Accounting, vol. 19, no. 1, pp. 197-214.

Pinsker, R 2011, 'Primacy or Recency? A Study of Order Effects When Nonprofessional Investors are Provided a Long Series of Disclosures', Behavioral Research in Accounting, vol. 23, no. 1, pp. 161-183.

Pravitasari, NP. (2016). Pengaruh Pola Penyajian End of Sequence (EoS) dan Seri Informasi Pendek Dalam Pengambilan Keputusan Investasi. STIE Perbanas Surabaya.

Rey, A, Le Goff, K, Abadie, M, & Courrieu, P 2019, 'The primacy order effect in complex decision making', Psychological Research, vol. 83, no. 1, pp. 1-10.

Rutledge, RW & Harrell, AM 94, 'The impact of responsibility and framing of budgetary information on group-shifts', Behavioral Research in Accounting, vol. 6, pp. 92-109.

Shepardson, ML 2019, 'Effects of individual task-specific experience in audit committee oversight of financial reporting outcomes', Accounting, Organizations and Society, vol. 74, no. C, pp. 56-74.

Solomon, I 1982, 'Probability assessment by individual auditors and audit teams: An empirical investigation', Journal of Accounting Research, vol. 20, no. 2, pp. 689-710.

Utami, I, Kusuma, IW, Gudono, G, & Supriyadi, S 2017, 'Debiasing the halo effect in audit decision: evidence from experimental study', Asian Review of Accounting, vol. 25, no. 2, pp. 211-241.

Zhao, Y & Harding, N 2013, 'Improving the interpretation of complex audit evidence: The beneficial role of order effects', Abacus, vol. 49, no. 4, pp. 476-505.



  • There are currently no refbacks.

Copyright (c) 2019 Journal of Economics, Business & Accountancy Ventura

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

The 6th International Conference on Business and Banking (ICBB) VI

Abstracting & Indexing



Hasil gambar untuk ccbyncsa

Copyright @ 2010 Pusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE)