A Review of Bias Research in Auditing: Opportunities for Integrating Experimental Psychology and Experimental Economics

Abstract

The objective of this paper is to show opportunities for integrating psychological and economics research in auditing. For this purpose, auditing research that employs both the methodologies of experimental psychology and experimental economics is collectively reviewed. The review is structured along three fundamental research questions: (1) Are auditors prone to biases; (2) what are the consequences of biased judgment in auditing; and (3) do features of the audit environment interact with the biased judgment? While both the research approach of experimental psychology and experimental economics are employed for addressing these resesarch questions, both approaches differ in their focus and their implementation. This review highlights these differences, outlines the main findings and identifies future research opportunities.