ACNT 1335 PRINT UPGRADE
ACNT 1335 PRINT UPGRADE
5th Edition
ISBN: 9781264007813
Author: Mintz
Publisher: MCG
Question
Book Icon
Chapter 4, Problem 1DQ
To determine

Explain self-serving bias and its influence on audit judgment.

Expert Solution & Answer
Check Mark

Explanation of Solution

The self-serving bias is a cognitive bias. It is the distorted perceptual process of an individual to enhance the self-esteem. The self-serving bias leads an individual to perceive oneself in an excessively favorable manner.

The self-serving bias is a situation wherein the people attribute all the positive events to their character and the negative events to other factors. In audit this shall be a problem when the individual considers oneself to be always correct and tries to take all the credit.

The tendency of overconfidence could be one of the reasons of self-serving bias. This however affects the objectivity and skepticism of an auditor and impact the audit judgment.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education