The Objectivity of Accountants’ Judgments: A Replication and Extension

• In Event: Ethics and Judgment

Abstract

This study examines accountants’ objectivity in estimating the value of an account. Its purpose is to determine whether professional objectivity, in generating a fair and unbiased accounting estimate, will be influenced by the possible conflicts of interest. Students, proxying as accountants, completed an experiment to test the impact of two factors that could create a conflict of interest: a client’s legal position and fee structure. We hypothesize that accountants will be influenced by their client’s legal position when providing estimates, and will be even more influenced when there is the possibility of being paid a fee contingent on the estimate.

Authors

• John T. Reisch, East Carolina University

• Samantha Dawson, East Carolina University