Decision Sciences Journal
Volume 28, Number 3
Summer 1997
Representations as Decision Aids: The Asymmetric Effects of
Words and Numbers on Auditors' Inherent Risk Judgments
William N. Dilla
School of Business Administration, University of MissourițSt.
Louis, 8001 Natural Bridge Rd., St. Louis, MO 63121,email: sdilla@umslvma.umsl.edu
Dan N. Stone
Department of Accountancy, University of IllinoisțUrbana-Champaign,
1206 S. Sixth St., Champaign, IL 61820,email: d-stone1@uiuc.edu
ABSTRACT
Decision aids often change the representations used to express risk
cue information and communicate risk judgments. In this study, we
hypothesize that numbers and words may have asymmetric effects when
used to represent risk cue information as opposed to when used to
communicate risk judgments. Specifically, decision makers'
agreement on cue weights and judgment consensus may be higher with
cue information stated in words rather than numbers, since
appropriately chosen words can more directly convey the risk
implications of information cues. In contrast, decision makers'
consistency in applying their judgment policies and judgment
consensus may be higher with risk judgments communicated in numbers
instead of words, because the greater precision available with
numbers allows finer discriminations of risk.
To test our hypotheses, we conducted an experiment in which
experienced financial auditors made inherent risk judgments for a
hypothetical manufacturing client. Cue and response representations
were manipulated between numbers and words. The results generally
support our arguments. In addition, representing cue information in
words increased the time required to acquire cue information
relative to numeric representation. In contrast, requiring auditors
to express their risk judgments in numbers increased the time
required to express risk assessments relative to words. These
results indicate that the effects of decision aids that change
representations may depend on the characteristics of the specific
decision subphase in which representations are changed.
Subject Areas: Auditor Judgment, Decision Processes,
Decision Support Systems, Information Representation, and Risk
Analysis.
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