Determining the individual microeconomic demand for continuous online assurance given specific types of decisions

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Title: Determining the individual microeconomic demand for continuous online assurance given specific types of decisions
Author: Daigle, Ronald Jude
Abstract: The accounting profession is studying the viability of a new potential assurance service , continuous auditing (continuous online assurance [COA] ) . The ability to begin developing COA as a professional service is due to the proliferation of information technology , which has provided more timely information , as well as the potential for more timely assurance . The purpose of this study is to investigate the relative demand for COA by individual decision -makers given specific types of decision -making situations . This study provides a framework based on the information hypothesis and information microeconomics for explaining the demand for COA when making individual repetitive decisions . Using an experimental methodology , five decision aspects are studied : (1 ) the level of precision in the COA report , (2 ) choice versus judgment decisions , (3 ) the level of similarity or dissimilarity of options when making choice decisions , (4 ) the number of decision criteria and (5 ) the benefit /penalty to be earned /incurred from making decisions . Markets are developed and compared to determine which situations have relatively more significant and consistent demand for COA . Results indicate that (1 ) more precise COA reports are significantly demanded more than less precise COA reports when an equal economic benefit can be obtained from either option , (2 ) COA demand is significantly greater and more consistent for judgment decisions than choice decisions , (3 ) while no significant difference in COA demand is found for choice decisions based on the similarity /dissimilarity of options . COA purchase patterns differ with changes in the similarity /dissimilarity of options , (4 ) COA demand is significantly greater and more consistent with an increase in the number of decision criteria when making judgment decisions , but only more consistent when making choice decisions , (5 ) no significant difference is found in the level or consistency of COA demand with an increase in reward /penalty to be earned /incurred , whether the decisions are judgment or choice in nature . Based on the results , because judgment decisions are more indicative of internal decisions and choice decisions are more indicative of external decisions to an organization , the accounting profession should first develop COA towards meeting the needs of internal decision -makers .
URI: http : / /hdl .handle .net /2346 /16785
Date: 2002-05

Citation

Determining the individual microeconomic demand for continuous online assurance given specific types of decisions. Doctoral dissertation, Texas Tech University. Available electronically from http : / /hdl .handle .net /2346 /16785 .

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