Cognitive Style and Auditor's judgment: Does Cognitive Style mitigate the Impact of recency bias on the auditors’ belief revision process?

The purpose of the present study is two-dimensional. First, provide more evidence of the effects of information order on auditors' beliefs, and secondly, examine whether auditors vary their beliefs in different cognitive styles. These goals were achieved through the use of experienced professional auditors. To determine the effects of information sequence, Hogarth and Einhorn’s belief-adjustment model was used to evaluate on going-concern, and the relationship between the style of Koolb's learning, and the model of Schroeder, Driver and Straffer, were a criteria of objective and abstract cognitive style. Data analysis were performed through Analysis of Variance Model. The findings support the existence of effects of the order of information (recency effect) during sequential processing of inconsistent evidence of a complex task, but the cognitive style does not reduce the bias of effect of the information order. Experimental results also show that auditors' judgment regarding the continue as a going concern follows the Schroeder, Driver, and Straffer Theory: Due to the complexity, abstract auditors process more information than objective auditors and have a broader range of beliefs.