Testing of the review and primary effects on long series audit information and its mitigation methods with group discussions

Yolanda Christina Rambing, Intiyas Utami, Ika Kristianti

Abstract


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 mitigation by using group discussion to improve the decision quality. It consists of recency effect and primacy effect. The recency effect is a bias that occurs when an individual making a decision by weighing the final information received is greater than the overall information received. In addition, the primacy effect is a bias that occurs when an individual makes a decision by weighing the initial information compared to the last 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: (i) the quality of individual decision that experienced the recency effect due to positive-negative and negative-positive sequential information after group discussion became better than it was before group discussion, (ii) the quality of individual decision that experienced the recency effect due to positive-negative simultaneous information could not be mitigated by group discussion, (iii) group discussion is an effective method for overcoming the recency effect on sequential information rather than on simultaneous information.


Keywords


Two until five, Keywords

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DOI: http://dx.doi.org/10.14414/jebav.v22i2.1204

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