Introduction

This chapter has four interrelated objectives. One objective is to provide an overview and evaluation of the many studies published during the last 20 years in which experienced auditors formed judgments or made decisions while performing audit tasks. The second objective is to recommend issues for and approaches to future research. A third objective is to compare findings of the audit judgment/decision–making (J/DM) studies with nonaudit J/DM studies, thereby increasing nonaudit J/DM researchers' awareness of these audit studies. The fourth objective is to provide a common foundation for Chapter 7 by Libby on knowledge and memory in auditing and Chapter 8 by Messier on audit decision aids. Meeting these objectives, as discussed later, should enhance the accessibility of audit J/DM research findings, highlight boundary conditions of extant theories, focus future research on promising issues, identify profitable methods for future research, and stimulate J/DM theory construction and revision.

The remainder of this chapter is divided into seven sections. The next section defines auditing and the following one highlights the objectives of J/DM research in the audit context. In these sections it is noted that the audit J/DM studies we review have primarily sought to: (a) describe how and how well auditors make judgments and decisions, (b) prescribe how to improve audit J/DM, and (c) contribute to nonaudit J/DM knowledge. In addition, it is noted that the totality of audit tasks/contexts features make auditing both distinctive and a rich arena for developing and testing J/DM theories.