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The Financial Auditor’s Risk Behavior – The Influence of Age on Risk Behavior in a Financial Audit Context

Author

Listed:
  • Iancu Octavian IONESCU

  • Eugeniu TURLEA

    (The Bucharest Academy of Economic Studies, Romania)

Abstract

A main issue in the audit process is the risk faced by the decision makers in every aspect of an audit process decision. The decision makers’ risk behaviour and their attitude towards risk is considered to be central to the way business risk, in general, and audit risk, in particular, is managed but no conclusive theory as to what influences the decision makers’ risk behaviour is commonly accepted. Although previous studies have brought arguments in favour of different factors considered to have an influence on the decision makers’ risk behaviour, what is not known is whether age has an influence on risk behaviour. This article advances the hypothesis that the auditor’s attitude towards risk is correlated with the auditor’s age, in a financial audit context. The methodological approach used was the survey of a representative sample using a carefully designed questionnaire and the use of statistical software to analyse the responses. The analysis of data collected revealed that there is a strong correlation between the financial auditor’s risk behaviour and the financial auditor’s age, confirming the research hypothesis as well as setting a starting point for future research.

Suggested Citation

  • Iancu Octavian IONESCU & Eugeniu TURLEA, 2011. "The Financial Auditor’s Risk Behavior – The Influence of Age on Risk Behavior in a Financial Audit Context," Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 10(4), pages 444-458, December.
    • Handle: RePEc:ami:journl:v:10:y:2011:i:4:p:444-458
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    References listed on IDEAS

    as
    1. Renate Schubert, 1999. "Financial Decision-Making: Are Women Really More Risk-Averse?," American Economic Review, American Economic Association, vol. 89(2), pages 381-385, May.
    2. Don Bellante & Carole A. Green, 2004. "Relative risk aversion among the elderly," Review of Financial Economics, John Wiley & Sons, vol. 13(3), pages 269-281.
    3. T. K. Das & Bing‐Sheng Teng, 2001. "Strategic risk behaviour and its temporalities: between risk propensity and decision context," Journal of Management Studies, Wiley Blackwell, vol. 38(4), pages 515-534, June.
    4. Highhouse, Scott & Yuce, Payam, 1996. "Perspectives, Perceptions, and Risk-Taking Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(2), pages 159-167, February.
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    Cited by:

    1. Thomas Meissner & Xavier Gassmann & Corinne Faure & Joachim Schleich, 2023. "Individual characteristics associated with risk and time preferences: A multi country representative survey," Journal of Risk and Uncertainty, Springer, vol. 66(1), pages 77-107, February.

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    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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